The question in my mind is, Should we allocate media spending to mirror the "influence" of each channel?
TV stations could see tougher times if one research company's advice is heeded. BIGresearch, a Worthington, Ohio-based consumer research company, says top automotive advertisers are spending too much on TV compared to the influence that TV has with its consumers. It says 17% to 18% of consumers are influenced by TV marketing--but in aggregate, automotive makers spend 40% of their media on TV.MediaPost Publications - Study: TV Doesn't Deliver Bang For Carmakers' Buck - 04/21/2008
For example, Ford Motor had 41% of its media budget going to TV, according to the researcher, with 18% of its consumers influenced by TV. All other media spending figures show that Ford under-spends, compared to their influence. BIGresearch says 16.5% of Ford's customers are influenced by newspapers, but that Ford only spends 5.9% of its media on newspapers.
With the Internet, 8.4% of Ford's consumers are swayed by Internet sites--but Ford only gives that media 3.9% of its media dollars. Radio brings 6.7% influence, but 1.5% of media spend. Outdoor sits at a 12% influence rate, but Ford only gives it 1% of budget.
Ford comes closest with magazines--where influence is at 17% and spending is at 13%. That also rings true for General Motors and Toyota.
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