Insite | Surprising Brand Awareness Gap In The Auto Sector

A new analysis from Nielsen’s Michael Katz reveals a surprising brand awareness gap in the auto retail sector: over one-third of Americans, and one in five consumers planning to buy or lease a vehicle, cannot name a single auto dealership. The findings, featured in this week’s Cumulus Media | Westwood One Audio Active Group blog, highlight a significant opportunity — and responsibility — for auto retailers to focus on long-term brand building rather than just short-term sales tactics.

“Auto dealers need ads that teach people who they are and build their brands,” Katz explains, citing Nielsen Scarborough data that surveys more than 330,000 consumers annually.

While dealerships often target in-market buyers through highly specialized ad tech strategies, the report emphasizes the importance of reaching the 95% of consumers who are not currently in the market — yet will be in the future.

The blog highlights the concept of “mental availability,” the idea that brands that are familiar and easy to recall tend to outperform competitors. A Nielsen study found that 90% of those intending to purchase a vehicle could already name their preferred brand unaided — reinforcing the value of sustained brand presence.

Experts like Dr. Grace Kite and James Hurman argue for two distinct advertising strategies: converting existing demand through rational, price-driven messaging, and creating future demand via broad-reach, emotionally resonant campaigns. “Creating future demand is about forming positive memories that influence decisions later,” says Hurman.

The blog also underlines the effectiveness of AM/FM radio in reaching auto intenders. In one example, shifting 20% of a TV ad budget to AM/FM radio increased campaign reach by 40% without any additional investment, thanks to radio’s strength in reaching light TV viewers.

Key takeaways for auto dealers:

• Brand building is essential: 36% of Americans can’t name a dealer; 21% of auto intenders are similarly unaware.
• Target future buyers: Emotional and memorable campaigns help build long-term demand.
• Use AM/FM radio: It drives significant incremental reach, especially among under-reached audiences.

Ultimately, Katz says, “You have to be known long before you’re needed.” Read the entire blog post here.