SOURCE: Prosper Technologies

December 16, 2008 09:00 ET

Media Reallocation Can Play a Role in Big 3 Rescue Plan

Consumer-Centric Media Allocation Can Boost ROI

COLUMBUS, OH--(Marketwire - December 16, 2008) - Detroit's Big 3 have grabbed all the recent headlines as lawmakers in Washington grapple with a proposed bailout solution to save the cash-strapped automakers. Changes are being demanded by Congress and proposed by the automakers. One change that needs to be addressed is how they allocate their advertising dollars. 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.

Prosper Technologies developed a new Media Allocation Model that 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.

The results represent the first cross platform, consumer-centric media planning and allocation tool. The service will enable advertisers such as the automakers and their ad agency partners to dramatically increase the effectiveness and efficiency of marketing communication and increase their ROI.

One glaring difference is the disproportionate allocation of spending on TV versus other media. An example is that the amount of radio consumed, its influence to purchase, combined with lower costs makes it a stronger media option, which according to consumers is under-utilized. On the other hand, the percentage of dollars spent on TV is not relative to its influence to purchase, consumption and cost.

Automotive Ad Spend vs. Prosper Media Allocation Model

           General Motors     Ford          Chrysler     Prosper Allocation
            Spend Share*   Spend Share*   Spend Share*         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 Stradegy, Prosper Media Allocation Model

*% of Total U.S. Advertising Spend in 2007

**Media influence weighted by consumption and media cost for people
planning to buy/lease a car/truck in the next 6 months

"These findings are nothing short of a complete re-think of media planning," said James Geoghegan, President of Media Head.

For charts specific to GM, Ford and Chrysler: http://info.bigresearch.com/

The new Prosper Media Allocation Model is a result of analysis of BIGresearch's Simultaneous Media Usage Survey (SIMM) by Prosper Technologies. Prosper Technologies collaborated with Martin Block and Don Schultz of the Medill School at Northwestern to analyze SIMM Surveys over six years to develop the Prosper Media Allocation Model.

About Prosper Technologies: Prosper Technologies develops consumer-centric analytics from consumer responses to help businesses forecast consumer demand and expenditures, budget marketing and merchandising allocations and provide retailer specific cross consumption behaviors. The Prosper Media Allocation Model is a service of Prosper Technologies. BIGresearch is an authorized marketing representative.

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