Photo: TimmyGUNZ | Flickr
According to The Wall Street Journal’s Sharon Terlep and Suzanne Vranica, General Motors will no longer be advertising during the Super Bowl.The news comes only days after General Motors pulled the plug on its entire $10 million Facebook budget citing poor performance.
Neither was shocking given how traumatic 2012 has been for GM’s advertising partners.
It started when chief marketing officer Joel Ewanick reviewed GM’s global $5 billion ad budget in January.
GM consolidated some 90 creative and media accounts into just three agencies. Goodby, Silverstein & Partners and McCann Erickson, at Ewanick’s bidding, created a 50/50 joint venture called “Commonwealth,” solely to handle Chevrolet’s massive account. A third agency, Carat, was then tasked with media buying.
The move was made because General Motors is looking to slash its media spending by as much as $2 billion over the next five years, according to the Journal.
GM’s decision to pull ads from Facebook and the Super Bowl are the first, and perhaps most public, moves for the automaker in the coming months.
The reason these were the first to go: They aren’t effective, GM believes.
Ewanick met with Facebook in January and was unimpressed by Facebook’s pitch for the value of its ads.
As for the Super Bowl, Ewanick told the Journal he suddenly came to the realisation Super Bowl ads were not effective, a theory he’s not alone in holding, particularly at their $4 million and rising price tag.
“We understand the reach the Super Bowl provides, but with the significant increase in price, we simply can’t justify the expense,” said Ewanick in a statement released by the company.
Despite being the third-largest Super Bowl advertiser, GM was overshadowed by numerous competitors including Chrysler’s “Halftime in America” ad featuring Clint Eastwood, Fiat’s supermodel-laden ads for the Fiat 500 and Honda’s remake of Ferris Bueller.
We surveyed 500 readers who ranked ads from Chrysler, Volkswagen, Audi, Honda and Fiat in their top 10. Among the same readers, two ads for the 2012 Chevrolet Silverado finished in the bottom 10.
With GM’s marketing plans in a state of flux the message to media vendors is clear: no campaign is safe, and GM is only at the beginning of its $2 billion in cuts.
Business Insider Emails & Alerts
Site highlights each day to your inbox.