AdAge provides a glimpse at how GM's financial crisis is affecting its marketing efforts
The "television upfront" is the term used when networks sell advertising time for the coming season's shows. An advertiser will commit to buying a particular amount of commercial time and then pay much closer to the show's airing in the fall. With everyone still unsure of whether GM and Chrysler will end up in bankruptcy, both advertisers -- who spent a combined $2.7 billion last year -- will need to pay in cash for their commercial time buys.
Soon after GM shrunk its marketing budget by $800 million and laid off 20% of its marketing and communications staff, the phrase "very concerned" was uttered from one executive to describe doing upfront deals with GM. TV networks would undoubtedly be among the last in line for money when restructuring, although they would have time to sell the ad space, it would probably be for a reduced amount.
However, if GM and Chrysler were forced to do cash-in-hand deals for the upfront this would not only be the worst time for them to need to engage in major cash outlays, it would also hinder their marketing pushes at about the time everyone is
[Source: Ad Age]
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Reader Comments (Page 1 of 1)
BigWill 10:13AM (4/28/2009)
I'm not sure it's any big loss. I can't recall any GM or Chrysler commercials in recent memory that would make me want to run out and buy one of their cars. Definitely nothing as memorable as the Kia Hamsters who seem to be doing a great job selling their Souls.
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FousString85 10:19AM (4/28/2009)
I always thought the ad that shows a GM vehicle directly compared to a German or Japanese in some secret hanger/lab one pretty effective.
Mike 11:28AM (4/28/2009)
For such a unique^Wugly car, the Nissan Cube ad that plays during Heroes is cute and memorable
BigWill 12:46PM (4/28/2009)
"GM vehicle directly compared to a German or Japanese in some secret hanger/lab one pretty effective. "
The "Best Secret Hanger/lab Car Commercial" award goes to VW for the "Unpimp Your Ride" series.
eMax 11:06AM (4/28/2009)
GM needs to stream line everything. Get rid of the seperate "brands" as an entire brand and keep each model from each brand that works.
Have a single "GENERAL MOTORS" dealership that sells the "Pontiac" Solstice, "Chevy" Corvette, "GMC" Yukon, etc... This will eliminate the need for Pontiac, or any "brand" to exist as an entire separate car line, yet allow each brand's history to remain in tact.
This will allow the best cars/trucks from each brand to stay alive and stream line GM's company and overall service. No one needs more then 1 version of the exact same car.
This will help all the dealerships because its better to stay in business then to have to close your only "pontiac" or other brand dealership.
Everyone wins here.
I just hope someone at GM reads this comment!
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mapoftazifosho 11:35AM (4/28/2009)
Agreed, but Pontiac and GMC need to go...
BigTeebo 11:31AM (4/28/2009)
If it means seeing car commercials less than 200 times/day, I am all for it. Loss of automotive advertising is a good thing.
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