GM cuts ad spending by $600m
You may or may not have noticed that GM has cut its spending on traditional advertising. It's hard to tell, really, with "This is our country" playing in the back of your mind (mission accomplished). Both TNS Media and GM agree that spending on traditional media was down in 2006, with GM claiming a $300 million drop and TNS Media methodology bringing a number closer to $600 million. What's amazing is that the drop in spending is about equal to the entire advertising budget of Nike.
GM isn't quite putting all that money into an IRA fund, however, as they're spending more money in online marketing and event sponsorship. The Pontiac G5 launch last summer consisted of online-only advertising. Vehicle awareness data has undoubtedly been poured over by GM marketing gurus, seeing if the trend towards less expensive online advertising is worth the risk. Either way, the shift is on from traditional ads to, well, everything else.
[Source: Adage.com]
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Reader Comments (Page 1 of 1)
akintz 8:36AM (2/13/2007)
G5 launch? Is that the G6 launch or am I missing something?
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Avinash machado 8:45AM (2/13/2007)
#1 I think the G5 is a rebaged Chevy Cobalt.
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Howard Kerr 9:13AM (2/13/2007)
When GM launched the "Cobalt-clone" G5 there was no TV advertising and almost no print advertising. Heck, even if there had been, the 5 looks so much like the 6 that it's easy to see one and believe you are looking at the other.
Last night's episode of "How I met your mother" sort of featured a G6 coupe with an alarm that never completely shut off. After several annoying hours of listening to the car's alarm, the driver was pelted with trash when he showed up to drive away. Something I've often thought of doing to folks who drive around blasting rap music on their car's stereo...with the windows down, IN FREAKING WINTER.
Sorry, I hate rap.
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Bruce Lee 10:01AM (2/13/2007)
This is a great idea to save money and to reinvest it into other things. The internet has a huge audience world wide, but thats obviouse, I just wish Ford and Chrysler would do the same. If they limited the amount of TV advertising they would save millions, the best part of it would be no more stupid "BOLD MOVES" commercials.
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Chris 2:20PM (2/13/2007)
Thank God... their advertising campaigns suck... they might as well just have those dudes from Boston put up LED pictures of a Cavalier giving everyone the finger...
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rrr 10:34AM (2/13/2007)
Howard, i want to do the same thing to people who listen to Beatles, or Rolling Stones or Justin Timberlake.
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