GM nearly doubles its advertising spending in the first half of the year

Article by Christian Andrei, on October 15, 2010

Ad-monitoring company Nielsen Co. said that in the first half of the year, General Motors Co. nearly doubled its advertising spending and is currently leading the marketing push in the recovering auto industry.

In a recent study by Nielsen Co., it was determined that in the first half of 2010, the auto industry spent $3.5 billion on advertising, a 27% increase when compared to the same period last year.

Nielsen didn’t indicate the amount spent by GM on ads but it said that the total had increased by 95% from the year-earlier period. It can be recalled that in the first half of 2009, GM was about to go into bankruptcy, and industrywide sales had fallen.

But this year, new-vehicle sales had increased by 10% through September. In an interview with Automotive News earlier this month, Jesse Toprak, vice president of industry trends at TrueCar, said that the sales increase was “another step in a stable, somewhat painful recovery.”

Nielsen said the automotive industry had been the leader in the top 20 product categories in US ad spending in the first half of 2010.

It noted that over $42 million was spent in advertising the Chevrolet Volt and Nissan Leaf in the US alone. Last July, GM ran a 30-second teaser ad in preparation for the Volt's release in November.

Last September, Nissan started running ads via Apple's iAd featuring a polar bear that hugs Leaf drivers. This was done in preparation for the December release of its first all-electric vehicle. [via autonews - sub. required]

Topics: gm, advertising

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