BIGresearch: Automakers Starting to Shift Ad Dollars to Digital…Is it Enough?
Analysis Compares Automakers’ Advertising Spend to Media that Influences Their Customers
COLUMBUS, OH –
(MARKET WIRE) – 4/15/08 – Recent reports indicate a shake-up
in Detroit with automakers making much needed changes to their traditional
marketing models by switching media agencies and reallocating more dollars to
digital advertising. This suggests they have started to see the light; however,
it may not be enough. According to an analysis of BIGresearch’s (http://www.bigresearch.com)
most recent Simultaneous Media Survey (SIMM 11, Dec. 07) of 15,727 participants,
17.5% of General Motors customers say TV influences their auto purchases, a
sharp contrast to the 40% of GM’s $3 Billion+ ad budget that was assigned to TV
ads in 2006.
Top automotive
advertisers pumped by far the greatest percentage of their media dollars into TV
in 06, making it the most unbalanced media when compared to its influence on
consumers to purchase. Because such a large portion of ad dollars were allocated
to TV in 2006, automakers including GM, Ford and Toyota under spent on other
forms of media such as newspaper, magazines, radio and the Internet. With their
primary focus on TV, Ford spent only 5.89% of their budget on newspaper
advertising which influences 16.5% of their customers. These discrepancies in
spend and influence can create a negative impact on marketing ROI, especially in
an uncertain economy.
Automotive Ad Spend vs.
Influence to Purchase
Spend/Influence**
| Advertiser | Magazines | Newspaper | Outdoor | TV | Radio |
Internet |
|
General Motors |
12.19%/16.9% | 6.66%/17.0% | 1.24%/10.2% | 40.29%/17.5% | 3.04%/6.4% | 3.59%/8.7% |
|
Ford |
13.08%/17.0% | 5.89%/16.5% | 0.82%/11.9% | 40.85%/18.0% | 1.52%/6.7% | 3.85%/8.4% |
|
Toyota |
12.95%/19.0% | 2.58%/15.8% | 1.09%/10.5% | 39.47%/16.8% | 1.40%/5.3% | 2.79%/8.6% |
*Source: BIGresearch SIMM 11
and analysis of Ad Age Domestic Ad Spending by Category (2006)
**% of Total US Ad Spend/Media influence on brand owners to purchase a vehicle
“Automakers are making advances in a consumer-centric media world by integrating
new media into their advertising strategy,” said Gary Drenik, President of
BIGresearch. “However, when you look at which media their customers say
influences them to purchase a car; they are over allocating ad dollars on TV and
under spending on Internet, outdoor, radio and print.”
For complete list and charts of the top automotive advertisers versus what their
customers say influences them to purchase, please click here:
http://info.bigresearch.com/
About BIGresearch
BIGresearch is a
consumer intelligence firm providing analysis of behavior in areas of products
and services, retail, financial services, automotive, and media. BIGresearch’s
syndicated Simultaneous Media Survey (SIMM) is focused on consumers to gauge
their consumption across media, products and services. Marketers can use SIMM to
develop the types of consumer-centric marketing plans required to increase
advertisers’ ROI. The SIMM monitors more than 15,000 consumers twice each year.
BIGresearch also conducts the Consumer Intentions and Actions Survey (CIA) of
more than 7,500 consumers monthly.
BIGresearch's methodology provides the most accurate consumer information in the
industry with a margin of error of +/- 1 percent.
http://www.bigresearch.com
Contact:
Chrissy Wissinger
BIGresearch
450 West Wilson Bridge Road
Suite 370
Worthington, Ohio 43085
(614) 846-0146
chrissy@bigresearch.com