GM hits the brakes on Oscar and Emmy ads
LOS ANGELES (Hollywood Reporter) - General Motors said Monday that it has dropped the curtain on advertising during the Academy Awards ceremony and will pull out of the Emmys in September, as part of the company’s efforts to slash its ad spending and marketing costs.
The decision not to buy advertising time during the Oscars, which will air in February on ABC, is “not just about cost-cutting but also about best return on investment and spending on properties that work best for our objectives,” GM rep Kelly Cusinato said.
“The Emmys (also on ABC) and Oscars are prestigious events, and the decision to release them was a difficult one, especially after over a decade of involvement,” Cusinato said. “Timing is always an important consideration for events such as these that concentrate many commercials into one evening. When timing aligns with a major vehicle launch for one of our brands, they fit more naturally into the marketing plans. That isn’t the case as we head into the next broadcast season, making it more difficult to justify the ROI.”
GM spent $13.5 million (7.2 million pounds) on media for the 2008 Oscars on ABC and a total of more than $110 million during the past 11 years.
In July, GM said it would cut and consolidate its marketing and sales budget and reconsider its investments in motor sports activity, including its sizable NASCAR sponsorship. Instead, the focus would be on product launches and brand advertising.
Cusinato said GM will continue to spend on TV and will remain involved with the Golden Globes, the Grammys and the Country Music Awards in 2009.
GM sales were down almost 18 percent through July, according to Autodata, and the brand is seeking to boost liquidity by $15 billion by 2009 via a mix of spending cutbacks and job cuts. Its losses reached $15.5 billion in the second quarter, the third-worst quarterly performance in its 100-year history.
Reuters/Hollywood Reporter
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