Talks between auto giant General Motors and magazine publisher Condé Nast Publications over the former’s ad schedule have collapsed. GM ads will disappear from the publisher’s titles as of May, one Condé Nast executive admitting: “There’s a standoff.”
GM bought around five hundred ad pages in the publisher’s magazines last year, spending $28 million. This year, it wanted to buy only 200 pages but has yet to agree a price.
However, the move by GM may not simply represent a cutback in adspend at a time of economic difficulty – other publishers such as Hearst Magazines, Time Inc and Hachette Filipacchi Magazines have not yet reported any similar wholesale withdrawal of advertising dollars by the auto company.
Instead, the root of the conflict between the two, suggest Condé Nast executives, is GM’s “aggressive” reaction to the publisher’s traditional lofty refusal to negotiate rates. The same problem saw GM refuse to advertise in Condé Nast titles between 1986 and 1994.
The Condé Nast stable includes such titles as Vanity Fair, The New Yorker, Glamour and Bon Appetit.
News source: Wall Street Journal