Will Automaker Financial Gloom be a Gift for Radio?

It should be.


That's what a new report from BIGresearch says (reported by MediaPost).

According to a recent analysis of BIGresearch's SIMM database by Prosper Technologies, wide gaps exist between how ad dollars have been spent versus what consumers say works best when it comes to buying a car. The Prosper analysis and media allocation model utilizes the SIMM Survey of 17,231 consumers to determine "what" and "which" media forms are most influential to consumers for buying a car, the consumption of the media, and pricing of various measured media.


Automotive Ad Spend vs. Prosper Media Allocation Model  (% of Total U.S. Advertising Spend in 2007)

General Motors Spend Share

Ford Spend Share

Chrysler Spend Share

Prosper Allocation Model

Magazines 

12.4%

11.9%

10.5% 

15.6%

Newspaper

5.0%

5.2%

6.9%

6.2%

Outdoor

1.5% 

0.7%

0.5%

14.6%

TV 

39.1%

38.9%

43.2%

17.3%

Radio 

3.5% 

2.3%

1.9%

21.5%

Internet 

7.0%

6.5%  

3.0%

8.5%

Other 

31.5% 

34.5%

34.0%

16.3%

Source: Ad Age Domestic Ad Spending by Category (2007)/Measured media from TNS Media Intelligence's Strategy, Prosper Media Allocation Model

So here's the key part: The report concludes that the amount of radio consumed, its influence to purchase, combined with lower costs makes it a stronger media option for automakers, which, according to consumers, is under-utilized.

Consumers – not broadcasters – say radio is far more influential to their auto purchase decisions than the automakers themselves believe.

Can you sell that, Radio?

Happy New Year.

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