Research Says Detroit Needs To Spend More At Radio

Survey Says To Spend More On Radio

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. ADAGE reports GENERAL MOTORS CORP., FORD MOTOR CO. and CHRYSLER spend too much on TV, which isn't as effective or efficient as other media, an analysis by OHIO-based BIGRESEARCH concluded.

BIGRESEARCH coupled the results of its semiannual online survey of 17,231 consumers in JUNE with just-developed software from PROSPER TECHNOLOGIES to develop the analysis and recommendations, said BIGRESEARCH Managing Dir. GARY DRENIK.

If radio reaches 90% of the people in a week, why does it only get 7% of ad dollars" from the Motor City?

The report found wide gaps between how DETROIT has divvied up ad budgets vs. what consumers say works best when it comes to making a decision to purchase a car.

Based on the three automakers' U.S. measured media in 2007, BIGRESEARCH recommends that they allocate the highest split of their annual budgets to radio, or 21.5%, from the low-single digit percentages each of the DETROIT three spent in the medium last year.

Asked DRENIK, "If radio reaches 90% of the people in a week, why does it only get 7% of ad dollars" from the MOTOR CITY?"

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