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
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.