Is Some GM Ad Money Coming Radio's Way?
August 12, 2009 at 4:40 AM (PT)
In what everyone hopes will help the automaker -- and be a boost to radio's bottom line, GENERAL MOTORS plans to increase its advertising budget for the rest of 2009 and 2010, reports REUTERS, to make clear to consumers that quality and fuel economy are much better than they're percieved to be. GM's honchos declined to be specific about the spending, but "It's going to go up materially," CFO RAY YOUNG said.
The auto industry had traditionally been one of radio's biggest advertisers. The GM bankruptcy, however, put a hold on big spending that has hurt radio's bottom line in recent financials quarters. Now, with GM dropping its SAAB, HUMMER and SATURN lines, core brands like CHEVROLET and CADILLAC spending is expected to rise even more than the overall budget, Young and other executives told REUTERS.
It's going to go up materially.
"You won't see advertising on behalf of GM. All advertising will be brand-focused," GM Vice Chairman BOB LUTZ said. "No one can buy a GM, anyway. They can buy a CHEVY." LUTZ said GM would launch a new ad campaign that would challenge consumers to reconsider their assumptions about its cars and trucks in a similar fashion to the marketing credited with helping CHRYSLER come back from its own financial crisis under the leadership of then-CEO LEE IACOCCA.
LUTZ said GM would run more ads in coming weeks that compare the features of its vehicles in head-to-head comparisons on fuel economy against rival automakers such as HONDA and TOYOTA. "Many people will be surprised to see some of the claims because they're so far from the conventional wisdom," LUTZ said. "I think we will shock people."