GM to review its $3 billion global media-buying

Article by Christian A., on August 31, 2011

General Motors’ efforts to cut marketing costs such as its $3 billion-plus global media agency review have made those in the advertising industry sit up and take notice.

Many are wondering why GM has made the changes. Among the reasons pointed out are GM’s desire to reduce its marketing budget and to ensure that funds are allocated according to the varying consumer consumption habits. In addition, GM is considering a plan to reduce expenses to pre-bankruptcy levels.

GM’s ad spending in the first quarter of 2011 fell by 8.3% even with its return to the Super Bowl, which it left when it underwent bankruptcy, according to Autonews.

A 30-second ad in the Super Bowl costs up to $3 million. The Advertising Age Data Center said that in 2010, GM spent $3.37 billion on global media.

If GM retains the marketing cuts it made in the first quarter to last the entire year, it may result to savings of $279 million. For global advertising in 2010, GM spent $4.26 billion overall, according to its annual report.

About 67% of this figure was spent in North America. Last week, Advertising Age, an affiliate of Automotive News, reported that GM is reviewing its global media-buying and planning duties that cost more than $3 billion.

In a statement, GM sad that it is accepting proposals from various global media shops for methods to boost the “efficiency and effectiveness of its global operations for purchased media." GM is working with over 20 media-buying companies throughout the globe.

Topics: gm, united states

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