GM cuts ad spending by $600 Million, Online up 19.4+%
February 11, 2007 - כ"ד שבט תשס"ז by admin
AdAge reports on a TNS study today that “GM slashed ad spending by more than $600 million last year, a drop so stunning it should convince even the staunchest doubters that the age of mass-media marketing is going the way of the horse and buggy.”
Betsy Lazar, executive director-advertising and media operations, said through a spokeswoman that “the automaker is continuing to shift more dollars online and that she believes TNS underreports digital spending.”
Peter Kim from Forrester asked me if I believe this statement is a vote for digital. He felt that the decline has more to do with GM’s overall financial difficulties.
I think its a combination of several things:
- GM’s financial difficulties
- Major shifts in the industry away from mass and TV to more targeted and measurable channels
- The huge importance of digital / interactive in the automotive space (80+% of people use the web to research their purchases before walking into a dealership)
Read the entire report here.
