Michigan State University researchers may have developed a model to help advertisers figure out where to put their dollars. They say that's critical in an environment where people now view TV while using smart phones, laptops or tablets.
Chen Lin is a marketing professor at MSU who helped develop the model. She says with a little information, it can predict consumer behavior with up to 97% accuracy. “If you give me the demographics and the media consumption habits for your consumers, I can predict exactly where you should allocate your firm resources.”
Lin notes that this could allow companies to make more effective advertising investments. She says AT&T wants her to apply her model to their customers. “So I have 5 years of AT&T bills and advertising account data and that will be the next paper I’m working on.”
- People spend about 35 percent of their time consuming media.
- Television is still the most popular outlet, followed by computer.
- During the weekend, consumers spend more time watching TV and reading print publications and less time on the computer and listening to radio.
- People spend about 1.5 hours a day consuming multiple media at the same time (e.g., surfing the Web while watching TV). This happens more at during the start of the workday and before bed – at about 9 a.m. and again at 9 p.m.
The model was developed based on a survey of media-consumption habits of nearly 5-thousand U-S residents.
It was published in the academic journal Marketing Science.
- Chris Zollars, Michigan Radio Newsroom