GM Puts Brakes on Adspend

23 September 2008

DETROIT: General Motors is to cut its digital adspend in 2009 after substantial increases over the last few years, as it  aims to “pull back slightly in all media types”, according vp-vehicle sales, services and marketing, Mark LaNeve.

GM has reduced its TV aspend in favour of digital over the last couple of years, but will now also scale back online as part of chairman/ceo Rick Wagoner's plans to focus sales and marketing budgets on product launches and brand advertising.

The company spent some $922 million (€632m; £500m) on measured media in the first six months of 2008 according to TNS, down on the $1.04m spent in the same period last year.

From January–June this year, TNS reports that GM's TV adspend fell from $519m to $487m, while its online expenditure rose to $88m from $74m.

Speaking of the company's savings strategy, LaNeve said: “It's 100 things. It's a consolidation of promotions and getting out of some. It's production, media, agencies, outsourcing contracts, structural costs and people."

As well as pulling out of its sponsorship of ABC's coverage of the Academy Awards, GM will also not be taking its traditional spot during the Super Bowl, as the event does not fit with new launches from its Cadillac marque.

GM's US sales fell by 18% in August, and it made a loss of $15 billion in the last quarter. The company is also expected to implement double-digit production cuts through to the end of this year.

Data Sourced from Advertising Age; additional content by WARC staff