SOURCE: BIGresearch

January 31, 2007 13:54 ET

BIGresearch's SIMM 9: Automakers Selling Hybrids With 1950's Marketing Model

Marketing Plans Haven't Kept Pace With Consumer Centric Media

COLUMBUS, OH -- (MARKET WIRE) -- January 31, 2007 -- As Detroit automakers rush to bring new models with new technology to market, many appear to have forgotten to revamp their marketing models to reflect the new consumer-centric media world, according to the latest Simultaneous Media Study (SIMM 9) from BIGresearch.

"No automaker would consider using 1950's state of the art engineering and design practices as a standard for designing and building a car for today's market, but automakers' media allocations are definitely designed for a bygone media environment. This is having a negative impact on their marketing ROI," said Gary Drenik, President & CEO of BIGresearch.

"We analyzed the allocation of measured media dollars from the various automakers versus the media influence that they had for their current customers who plan on purchasing a car. The results show a chasm between how the dollars are spent versus what consumers say influences their purchases," said Joe Pilotta, VP, Research of BIGresearch.

Top Media Influence for All Consumers Planning on Buying a Car/Truck in the Next 6 Months

Magazines
TV / Cable Advertising
Newspaper & Inserts
Radio
Outdoor
Internet & Email
Yellow Pages
"Automakers tend to over allocate dollars to a couple of areas at the expense of other areas, which could have even more influence for less investment. This is especially true when you analyze allocation versus influence by specific automakers," said Pilotta. "Television is over allocated and media options such as radio, Internet, newspaper and outdoor are almost universally under allocated ad dollars."
LEADING AUTOMOTIVE ADVERTISERS
RANKED BY TOTAL U.S. ADVERTISING SPENDING IN 2005*

                       Maga-  News-    Out-                   Inter- Yellow
Advertiser             zines  paper    door    TV      Radio  net    Pages

General   % of Spend   17.9%   4.0%    0.1%    50.2%   1.0%    0.7%    0%
Motors:   GM Owners
          Influenced   16.7%   17.5%   10.9%   18.8%   15.1%   8%      8.1%

Ford      % of Spend   11.4%   13.4%   1.2%    37.6%   2.9%    2.5%    0%
Motor Co. Ford Owners
          Influenced   18.7%   18.5%   12.2%   21.4%   15.6%   8.9%    8.9%

Daimler-  % of Spend   10.1%   10.3%   1.9%    27.8%   4.2%    4.8%    0%
Chrysler  D.C. Owners
          Influenced   18.4%   17.4%   10.7%   20.5%   15.5%   7.3%    8.1%

Toyota    % of Spend   2.3%    25.2%   2.2%    27.2%   7.9%    5.8%    0.5%
Motor     Toy. Owners
Corp.     Influenced   17.6%   15.6%   11.3%   19.8%   12.8%   7.6%    7.5%

Nissan    % of Spend   1.9%    26%     2.3%    27.2%   8.3%    2.3%    0.4%
Motor     Niss. Owners
Co.       Influenced   18%     16.3%   11.8%   19.2%   15.9%   7.6%    7.4%

Honda     % of Spend   14.1%   7.9%    0.8%    38.5%   1.8%    2.3%    0.6%
Motor     Honda Owners
Co.       Influenced   20.8%   19%     11.5%   23.5%   15.7%   9.6%    7.1%

Hyundai   % of Spend   14.3%   10.4%   0.5%    44.7%   1.6%    1.5%    0%
Motor     Hyun. Owners
Co.       Influenced   15.3%   13.6%   11.9%   19%     11.7%   9.3%    8.6%

Volks-    % of Spend   13.4%   4.3%    0.9%    38.4%   1.4%    1.8%    0%
wagen     V.W. Owners
          Influenced   25.2%   14.2%   10.4%   31.8%   15.9%   9.2%    9.3%

Kia       % of Spend   8.2%    9.6%    2.0%    31.3%   6.8%    4%      0%
Motors    Kia Owners
Corp.     Influenced   12.1%   16.6%   9.5%    18.4%   17.7%   7%      6.4%

* BIGresearch SIMM 9 2006 and analysis of Ad Age Domestic Ad Spending by
Category (2005)
The continuing erosion of customer preference for U.S. automakers should stimulate Detroit to rethink and retool their marketing model as BIGresearch's January Consumer Intentions and Actions (CIA) Survey Future Purchase Rankings indicates increased losses in market share for Detroit's Big 3 (Ford -7.32, Dodge -6.24, Jeep -2.45 and Mercury -2.07).

The ranking is compiled monthly by indexing current owners who plan on buying a new car with their expected make of purchase. To view the entire rankings and other BIGresearch samples, go to: http://www.bigresearch.com and click on Complimentary Top Line Findings.

About BIGresearch

BIGresearch is a market intelligence firm providing analysis of consumer behavior in areas of retail, financial services, automotive, and media. The syndicated Simultaneous Media Usage Study (SIMM) monitors more than 15,000 consumers twice each year to identify opportunities in a fragmented and changing marketplace including the media. They also conduct the Consumer Intentions and Actions Survey (CIA) which monitors the pulse of more than 7,000 consumers each month.

BIGresearch's methodology provides the most accurate consumer information in the industry with a margin of error of +/- 1 percent.

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