WHEN MORE I$ REALLY LE$$!!!

65.9% of Ford Motor Co.’s total media spending is “Unmeasured”. That is an increase of 14.3% yr over yr. For AdAge’s 200 Leading Nat’l Advertisers in 2014, Unmeasured Media Spending (UMS) was 45.5% of ALL media spending with a growth rate of 12½% yr over yr. Big3 competitors GM & Fiat-Chrysler’s Unmeasured Media Spending (UMS) were 46.8% and 49.8%, respectively with the yr over yr growth rates of 9.9% and 38.9% (WOW!), as well. We’re sure our kind readers would wonder why we are making such a big deal about Measured Media Spending (MMS) and Unmeasured Media Spending (UMS) and what do they mean. Thank You! We thought that you would never, ever ask. 1st let’s answer the 2nd question. What the heck do MMS and UMS mean anyway? According to AdAge (6-19-11) Measured Media includes Network TV, Cable TV, Spot TV, Magazines, Newspapers, Radio, Outdoor and Display Internet advertising (but not pd search nor broad band video). Unmeasured Media includes direct marketing, promotion, product placement, events & digital media (such as pd search & broadband media). The value of UMS is significant. It allows a firm to promote its products/services w/o divulging specific media purchases. In other words, in the world of transparency, it is a covert agent. As a result, any firm’s creativity & individuality is fairly well “kept under wraps”. In sum, the quality & quantity of UMS is kept in house±.

Let’s be a bit historical for a few lines. With the advent of the “new media” b/t the mid-90s and early 2000s, there was a great shift in media readership/viewership and advertising/media $$. The “old media” became less and the “New Media” became more. Part of this shift meant that old ad rates quickly lessened as they became less frequently used. “New Media” and unmeasured media usage rates eventually grew and unmeasured media became very, very popular b/c it was stealth± and lacked accountability. To some extent, T-1 presents these phenomena and their outcome. The cols labelled US Measured Media are great examples of “old media” ad info even as they continue to lose gravitas. Of AdAge’s TOP 10 advertisers (or Measured Media Spending), 8 spent less in 2014 than 2013. The cols labelled as Estimated Unmeasured Media Spending show the continued growth of UMS as ALL 10 of the TOP 10 advertisers grew this category avging a yr over yr growth of 12.6%. WOW! (The sum of MMS & UMS is Total Media Spending)

TOP 10 LEADING NATIONAL ADVERTISERS (in M $$)
Rank Company US Measured Media Spending (MMS) % Δ Est. US Measured Spending Estimated US Unmeasured Spending (UMS) % Δ Est. US Unmeasured Spending
2013 2014 2013 2014
#1 Procter & Gamble Co.      3,361.9      2,918.9 -13.2%      1,447.3      1,688.1 16.6%
#2 AT&T      1,880.2      1,636.2 -13.0%      1,387.8      1,635.8 17.9%
#3 General Motors Co.      1,812.6      1,659.7 -8.4%      1,329.1      1,460.3 9.9%
#4 Comcast Corp.      1,668.4      1,556.9 -6.7%      1,413.7      1,471.7 4.1%
#5 Verizon Communications      1,237.8      1,291.8 4.4%      1,200.2      1,234.2 2.8%
#6 Ford Motor Co.      1,137.6         841.8 -26.0%      1,421.8      1,625.4 14.3%
#7 American Express Co.         300.0         372.1 24.0%      1,891.3      1,992.2 5.3%
#8 Fiat Chrysler Automobiles      1,166.3      1,128.4 -3.2%         807.4      1,121.4 38.9%
#9 L’Oréal      1,605.2      1,473.7 -8.2%         596.5         684.4 14.7%
#10 Walt Disney Co.         892.2         869.0 -2.6%      1,071.7      1,240.1 15.7%
Total   15,062.2   13,748.5 -8.7%   12,566.8   14,153.6 12.6%

 

T-2: An Industry by Industry Categorical Comparison of the % of Unmeasured Media Spending (of total) of 2013 & 2014
Industry Total Media Spending (Meas & Unmeas) Estimated US Media Unmeasured Spending Unmeasured

% of Total

2013 2014 2013 2014 2013 2014
Credit Card 10,040.70 10,522.80 7,467.40 8,136.20 74.4% 77.3%
Beer 3,889.80   4,021.70 2,407.00 2,569.00 61.9% 63.9%
Retail  14,227.70  14,398.40 7,978.80 8,426.40 56.1% 58.5%
Wireless  15,746.90  16,274.70 7,213.20   7,747.00 45.8% 47.6%
Auto  15,892.30 16,114.80 6,517.20  7,330.60 41.0% 45.5%
Personal Care  12,181.30 11,989.70 4,276.40 4,663.20 35.1% 38.9%
Drug 9,725.80  10,273.20 3,707.30  3,577.30 38.1% 34.8%
Household   6,369.70 6,206.10 1,610.20  2,042.80 25.3% 32.9%
Bev Brands 3,153.50 3,077.20 937.50 927.60 29.7% 30.1%
Restaurants 4,904.80 4,940.90 1,077.70 1,128.00 22.0% 22.8%
Insurance 5,429.40    5,582.80 1,310.20 1,120.80 24.1% 20.1%

 

T-3: A Comparison of the 2013 & 14 Measured & Unmeasured Promo Spending by Autos on the 200 Largest Advertisers
Rank Company US Measured Media Spending % Δ Est. US Measured Spending Estimated US Unmeasured Spending % Δ Est.

US Unmeasured Spending

% of Unmeasured to Total Ad Spend
2013 2014 2013 2014 2013 2014
#3 General Motors Co. 1,812.6    1,659.7 -8.4%     1,329.1      1,460.3 9.9% 42.3% 46.8%
#6 Ford Motor Co. 1,137.6      841.8 -26.0%     1,421.8      1,625.4 14.3% 55.6% 65.9%
#8 Fiat Chrysler 1,166.3    1,128.4 -3.2%        807.4      1,121.4 38.9% 40.9% 49.8%
#11 Toyota Motor Corp. 1,274.5    1,203.2 -5.6%        815.7         887.0 8.7% 39.0% 42.4%
#29 Nissan Motor Co.    861.5      861.6 0.0%        439.0         482.5 9.9% 33.8% 35.9%
#38 Honda Motor Co.    662.2      567.1 -14.4%        576.1         493.4 -14.4% 46.5% 46.5%
#42 Volkswagen    526.4      604.9 14.9%        284.2         326.6 14.9% 35.1% 35.1%
#79 Daimler    331.8      338.2 1.9%        219.5         223.8 2.0% 39.8% 39.8%
#80 Kia Motor Corp    403.9      381.4 -5.6%        184.6         172.7 -6.4% 31.4% 31.2%
#85 Hyundai Motor Co.    288.8      304.1 5.3%        203.4         188.1 -7.5% 41.3% 38.2%
#104 Fuji Hvy Ind (Subaru)    226.5      294.3 29.9%          77.4           95.1 22.9% 25.5% 24.4%
#122 Mazda Motor Corp.    272.3      276.7 1.6%          54.1           81.7 51.0% 16.6% 22.8%
#140 BMW Group    167.4      198.5 18.6%        107.0           92.9 -13.2% 39.0% 31.9%
#186 Tata Motors 146.6 124.1 -15.3% 94.2 79.7 -15.4% 39.1% 39.1%
Total 9,278.4  8,784.0 -5.3%    6,613.5     7,330.6 10.8% 41.6% 45.5%

 

Table 2 aligns the firms represented in AdAge’s 200 Largest Advertisers into their appropriate industries. The industry that has been the most aggressive & progressive (highest %) with its media spending being unmeasured is the Credit Card industry with 77% of its total media spending being unmeasured in 2014. This means you never know where you will find them. They may be co-presenters at local fairs, sponsors of concerts, have booths at political campaign rallies, etc. On the other hand the least progressive (lowest % of UMS) industry is contested b/t Insurance & Restaurants (For 2014, Insurance was the lowest % at 20.1%). Of the 11 presented industries, the Auto Makers were #5 with 45.5% of its total Media Spending being Unmeasured. Furthermore, as an industry its % of UMS has grown by 4% from 2013 to 2014.

Table 3 gives us great insight into the media spending habits of specific auto makers. We find it very informative that Ford Motor leads the pack in terms of UMS at almost 66% of its total media spending (You may recall from the last Scope that Ford Mtr Co spent the least ad $$ per vehicle. Indeed, we see Ford’s strategy more patently, now). It is followed by Marchionne Mtrs at 50% is #2 and GM “closing in” on 47%. Honda and Toyota at 46½% and 42.4 %, respectively are next. Subaru Mtrs (Fuji Hvy Ind) and Mazda with 22.8% and 24.4%, respectively are the tail gaters of the Fab 14 auto makers presented in T-3. We’re confident that the autos will continue to increase their UMS as they desire to become more intimate with their customers.

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About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
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