Chrysler Ad Budget Cut From $17.5 To $6M Per Month
May 5, 2009 at 5:09 AM (PT)
In another cut in auto advertising that's sure to hurt radio, CHRYSLER will be working with a significantly smaller marketing budget under a nine-week plan to emerge from bankruptcy, reports THE NEW YORK POST, writing "the company's estimated $4.1 billion budget earmarks just $67 million for advertising and marketing -- about half the amount the company wanted during talks with the Treasury Department, which has allowed the company a maximum of $4.6 billion in financing."
"It was a hotly discussed issue," CAPSTONE ADVISORY GROUP LLC, Exec. Director ROBERT MANZO said in court testimony yesterday.
"CHRYSLER spent $228 million to buy and place ads in the fourth quarter alone, down 37% from the same period a year ago, according to figures from ad tracker TNS. Yet while the automaker has been slashing its ad budget, it still ranks #20 among U.S. advertisers, according to TNS.
"The TNS figures reflect CHRYSLER's media spending and don't include the fees it pays to its ad agencies or the cost to produce ads, among other things."