If you love hearing John Mellencamp croon to Chevrolet trucks during Oscar breaks, you will be disappointed to learn GM and other automakers are drastically cutting back their ad budgets.
Automakers and dealers are combining to spend about $15 billion on advertising this year – the lowest total since 1999 and down 16 percent from 2007. The decline reflects both the drive for cost cutting to deal with slowing sales as well as the broader shift of funding away from print and television to less expensive, more targeted advertising on the Internet.
General Motors led the break from traditional media this year by pulling its longstanding sponsorship of the Academy Awards broadcast and dropping out of the Emmy Awards. It will be relying on major web campaigns for launching future products like the 2009 Chevrolet Traverse and the 2010 Cadillac CTS Wagon. Chrysler is taking a similar route in its ad support for the 2009 Dodge Ram introduction.
Source: Automotive News