Jean Halliday over at AdAge has a great little article up right now, one that ties in nicely to the evening news. Her opening line says it all:
Detroit’s Big Three automakers need to rethink where they spend their ad dollars and allocate more to consumer-centric media, such as radio, with better return on investment, according to recommendations based on research released this week.
BigResearch combined the results of a survey they did last June (17,231 ppl surveyed) with newly developed software from Prosper Technologies to develop their analysis. According to the Prosper model, the automotive giants are advised to allocate the largest amount of their ad budget to radio. At the moment, radio spending by the Detroit Three falls below 5% of their respective budgets, with Chrysler at the bottom allocating only 1.9% in 2007. The Prosper model advises 21.5%
Gary Drenik, managing director of BigResearch, posed the question to AdAge, ” “If radio reaches 90% of the people in a week, why does it only get seven percent of ad dollars” from the Motor City?”
Like Ms. Halliday, I find one aspect of this to be quite interesting; the Prosper model presented by BigResearch only advises an increase on one or two percent in spending for online ads. Since BigResearch is an authorized marketing representative of Prosper Technologies, it is useful to note that Prosper was acquired early this year by a company called Mzinga. Mzinga specializes in online efforts and social media.