GM's Gets New Ad Budget: $40 Million to $50 Million A Month
Ad sales executives disappointed by General Motors descent into Chapter 11, might have a smile on their faces today. Ad Age’s Jean Halliday reports that the auto giant’s ad budget of between $40 million to $50 million a month has been approved by the Government’s auto task force.
As the car maker entered Chapter 11 proceedings at the start of June, it had been unclear whether advertising would be seen as essential to the company’s survival. The government seems to think it is. GM’s Reinvention ad campaign, currently on air to reassure consumers that GM will still be around, is coming to an end though, according to Ad Age. What comes next will hopefully buoy the ad market as well as car buyers.
sloane commented:
Let's hope that future money GM spends on adveriting is actually spent on advertising cars.
I'm angry that any of my taxpayer money is being spent on propping up a failing company which has already eaten $30 billion and then gone on to declare bankruptcy anyway, and now plans to spend $50 billion it doesn't have on advertising..without having paid off advertisements we've already made...
John Tantillo, who is actually optimistic about the company's future (because of the strength of its brands) pointed out on his marketing blog that the GM reinvention commercial is a failure because "people don't buy a company; they buy a car." (He also maintains that "corporate advertising doesn't work" and has railed against Super Bowl commercials in the past.)
At any rate, the spoof version of the commercial is much more creative and honest.
And I'm with Jon Stewart - if we're investing in companies..how about investing in a good one, instead of in a failing one?