Big Three Automakers Curtail Advertising Dollars
November 20, 2008 at 5:14 AM (PT)
The Big Three U.S. car manufacturers have cut their advertising spending this year in another sign of the U.S. auto industry's turmoil, reports MARKETWATCH.COM. Through JULY 2008, FORD MOTOR CO. and CHRYSLER LLC each spent 22% less on advertising than they did in 2007, while GENERAL MOTORS CORP. cut its ad spending by 6%, according to data from NIELSEN MONITOR-PLUS.
On the other side, some foreign automakers dramatically increased their ad expenditures. HONDA MOTOR CO. spent 13% more in the first seven months of 2008 compared to the same period in 2007, while DAIMLER AG increased its spending by 48%. VOLKSWAGEN posted a 23% increase. MAZDA MOTOR CORP. increased its outlay of ad dollars by 4%.
Among foreign reductions in ad spending, HYUNDAI MOTOR CO. cut its expenditures by 17%, and NISSAN MOTORS slashed theirs by 15%. TOYOTA MOTOR CORP.'s ad spending remained unchanged.
Across the entire auto industry through JULY, ad expenditures fell 10%. The decline in overall ad revenues at media companies is partially intertwined with the auto industry's difficulties. Many media outlets depend heavily on automotive advertising, including broadcast and cable networks, TV stations and radio networks and stations, as well as newspapers.