Prosper MediaPlanIQ: Telecom Companies Need to Reallocate Ad Expenditures

Internet Smart Alternative for Increased ROI


COLUMBUS, OH--(Marketwire - February 5, 2009) - Amidst a volatile economy, companies' ad budgets are shrinking, creating a unique opportunity for ad execs to evaluate their media plans and gauge which measured media forms get the most bang for their buck. According to Prosper MediaPlanIQ (a consumer-centric media allocation tool from Prosper Technologies), Telecom giants AT&T, Verizon and Sprint Nextel could stand to benefit from a reallocation of media dollars.

Prosper MediaPlanIQ connects data from BIGresearch's Simultaneous Media Usage Survey with advanced analytics developed by Don Schultz and Martin Block of the Medill Scholl at Northwestern and Prosper Technologies to generate idealized media allocations. The results show that wide gaps exist between how ad dollars have been spent versus what consumers say works best when it comes to buying telecommunications.

Not unlike the cash-strapped Domestic auto industry, Telecom companies and their ad agency partners may be overspending on some media options at the expense of others such as Internet, radio, magazines and outdoor. The amount of Internet consumed, its influence to purchase, combined with lower costs makes it a strong media option, which according to consumers is under-utilized.

   Telecom Ad Spend (Measured Media) vs. Prosper MediaPlanIQ
   ---------------------------------------------------------

              AT&T       Verizon Comm.  Sprint Nextel      Prosper
           Spend Share*   Spend Share*   Spend Share*   MediaPlanIQ**
Magazines     2.6%           4.3%            3.5%          11.3%
Newspaper    14.6%          32.0%           35.1%           6.0%
Outdoor       4.8%           3.0%            4.6%          13.7%
TV           60.4%          42.3%           43.8%          28.5%
Radio        11.4%           9.6%            7.5%          25.9%
Internet      6.0%           8.8%            5.4%          14.7%

Source: Ad Age Domestic Ad Spending by Category (2007)/Measured Media from
 TNS Media Intelligence's Stradegy, Prosper Media Allocation Model
*% of U.S. Advertising Spend in 2007 (Measured Media)
**Media influence weighted by consumption and media cost for adults 18+

For additional charts and more information: http://info.bigresearch.com/.

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

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 provides retailer specific cross consumption behaviors. Prosper MediaPlanIQ is a service of Prosper Technologies. BIGresearch is an authorized marketing representative.

Contact Information: Contact: Chrissy Wissinger BIGresearch 450 West Wilson Bridge Road Suite 370 Worthington, Ohio 43085 (614) 846-0146