GM will stop advertising during the Super Bowl due to the high costs

Article by Christian Andrei, on May 21, 2012

Don’t expect to see an ad from General Motors during the next Super Bowl. GM has said that this is part of the company’s plan to shake up its strategy. Just a few days ago, GM said that it won’t pay for Facebook ads anymore. In a statement, GM marketing chief Joel Ewanick said that they can’t justify the expense, especially with the considerable price increase in Super Bowl ads.

The National Football League’s championship game will next be seen on CBS. This annual event, which takes place on Feb. 3, sells 30-second spots for as high as $4 million. Earlier this year, the Super Bowl was seen on NBC, which sold the 30-second commercial cost for an average of $3.5 million. For the 2012 game, GM had five ad spots. Last year marked GM’s return to advertising on Super Bowl after having been absent from the 2008 to 2010 games due to the financial crisis.

Aside from the millions of viewers that watches the Super Bowl and its commercials. The ads may also go viral on YouTube and in other social media sites. For example, Chrysler Group got a lot of attention after it aired its two-minute spot dubbed “Halftime in America” that featured Clint Eastwood. On YouTube, its commercial now has almost 11 million views. Ewanick was interviewed by Advertising Age earlier this year before the Super Bowl started.

He said back then that several gauges were used to determine how successful its ads were. He said that monitoring is done by five or six groups. They would make use of copy testing and create focus groups.

He said that plenty of money is involved so how to achieve ROI has to be understood well to ensure that the companies learn from the experience and they apply those in the next year. Last Tuesday, GM said that it wouldn’t pay for Facebook ads anymore since it didn’t find an effective medium. Rather, GM said that it will concentrate social media efforts on the free pages on Facebook instead of the paid aids.

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