• Aug 12, 2008
Mainstream media has been quick to pile on Detroit automakers, which, along with some questionable Motown metal, has helped drive nationwide perception of the Big Three into the ground. Now that times are tough at traditional media outlets, well, that's Detroit's fault, too. Back in 2004, about $24 billion was doled out to television, print, and radio ads. Fast forward to 2008, and painfully slow sales coupled with cash-strapped automakers and dealerships have cut that number to about $15 billion. That's putting an Excursion-sized dent in the earnings of stalwart media companies like Viacom and Time Warner (Autoblog and Weblogs, Inc. are owned by Time Warner), as the media giants point directly towards Detroit and a soft auto market to explain their drop in revenue.
While times are tough on TV, print advertising is taking the brunt of the blow. Newspapers took a $131 million hit in the first quarter of 2008 as dealers have pulled back on full and half-page ads due to slow sales and limited cash flow. The proliferation of mainstream Internet advertising is also cutting into old media's profits, as automakers feel they're getting more bang for the buck with less expensive online ads. With the car market looking worse by the day and the unabated growth of Internet advertising, we don't expect this trend to reverse itself any time soon.

[Source: New York Times]


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  • 15 Comments
      • 6 Years Ago
      I am glad to hear the media is suffering. The media spins everything and makes it worse than it really is and actually has a more damaging effect.

      Jason
        • 6 Years Ago
        NYtimes stock is at a 12 year low. The stock has plunged about 40% since April 25.

        "The value of 11 newspaper companies traded on the public market since 2005 dove a combined $23.7 billion in the first half of this year, falling almost as much in six months as they had in the three prior years put together."

        It has nothing to do with this article. The rags are failing.
        • 6 Years Ago
        NYtimes stock is at a 12 year low. The stock has plunged about 40% since April 25.

        "The value of 11 newspaper companies traded on the public market since 2005 dove a combined $23.7 billion in the first half of this year, falling almost as much in six months as they had in the three prior years put together."

        It has nothing to do with this article. The rags are failing.
        • 6 Years Ago
        And smart comments aside, I should probably add that I love Autoblog and visit multiple times each day... I know that it's a tough time for lots of companies, and I would hate to see you guys even slow down!!!
      • 6 Years Ago
      close, but not quite right.

      Circulation has dropped like a stone. As circulation decreases, so does advertising revenues (as rates are based on circulation...)

      There are many reasons that circulation has dropped, from internet to increased 24 hour cable news choices to what some or many (debatable) perceive as agenda based content versus objective reporting.

      Any way you cut it, the papers aren't hurting because of decreased ad revenue, but rather, ad revenue is hurting because of decreased circulation.

      (this same phenomena is affecting stock prices. See: Gray Lady, 10 year trending)
        • 6 Years Ago
        Well I think the point is that the media outlets are saying its detroit spending less on them thats the cause of their lost revenue. Autoblog is merely pointing out the lae ass agrument.

        The newspaper is a horrible way to distribute news in todays day and age. Its much too slow compared to the internet.
      • 6 Years Ago
      I guess it should be no surprise that "Old media's" biggest contributers were the American auto indistry. Since it has been proven, long ago, that those advertising methods don't work anymore this should be chalked up as one more thing these guys have been doing wrong in a big way. These companies don't make me feel "proud to be an American". Thats the main reason they are doing so poorly. They make their customers feel bad about themselves.
      • 6 Years Ago
      If mainstream media takes it in the shorts because they love to bite the hands that feed them, then so it.

      More idiots out of work is a good thing.
      • 6 Years Ago
      MINI tried an ad like that in Car and Driver. It sucked.
      • 6 Years Ago
      Wow - Detroit is FINALLY reacting to market conditions and doing something about it.

      Could this be a sign that small, well-equipped, fun to drive, fuel efficient cars are in the future for Detroit as well?

      One can only hope.

      -ted
      • 6 Years Ago
      Ha! It sounds like the current mentality of a lot of Americans.

      It is "someone else fault".

      Problem is the NYT and the main stream media can't sue anyone over this.
      • 6 Years Ago
      Print has been in decline for years. This is another nail in a very splintered coffin.
      • 6 Years Ago
      This seems about right, Detroit should have cut them off from the spicket years ago for the most biased and sometimes even lies that they would print about them. Good riddance pinko comme rags...
      • 6 Years Ago
      good riddance pinko comme rags..
      • 6 Years Ago

      Actually I guess many of the car reviews in many of the print newspapers themselves are advertisements rather than actual reviews. Also known as advertorial. ADVERtisement + EdiTORIAL = Advertorial
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