Chevrolet advertising will be consolidated by GM under a recently created venture

Article by Christian Andrei, on March 29, 2012

The creative advertising jobs for Chevrolet worldwide will be consolidated by General Motors under a recently created venture that’s operated by two big conglomerates. GM is doing this to cut costs and to unite the global message of its flagship brand. GM said that two companies -- Goodby, Silverstein & Partners and McCann Erickson Worldwide – will be combining under an entity named Commonwealth.

These agencies already do majority of the creative work for Chevrolet but now, they will handle advertising for most of the global markets. OmniCom Group is the owner of Goodby Silverstein & Partners of San Francisco, which was Chevrolet's main U.S. ad agency since 2010. It’s credited for the "Chevy Runs Deep" campaign.

Interpublic Group, which is Chevrolet's biggest advertising agency overseas, is the owner of McCann Erickson Worldwide of New York. According to GM global marketing chief Joel Ewanick, the company will be able to save $2 billion in marketing costs over five years from the consolidation this January of its media-buying duties on top of the savings to be expected from streamlining the Chevy creative work.

In a statement, Ewanick said that these savings will return to the marketing budget while some will go to the bottom line. Ewanick added that the coming together of these two big marketing communications holding companies marks the first time in the industry.

He said that Commonwealth, which will be focused on making Chevrolet stronger and bigger to turn into an “iconic global brand,” is to be based in Detroit. In a statement, GM said that this new agency will be supervised by an eight-person advisory board to make sure that there is “consistent global branding” in the various local markets.

This agency will have offices in Detroit, Milan, Mumbai and Sao Paulo to serve as key marketing hubs. Its annual report released just last month stated GM's global advertising budget increased by 5% last year to $4.48 billion. The effect of this plan is that billions of dollars in advertising work will be rearranged throughout the world.

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