GM Prepares More Ad Cuts
General Motors became the second top-25 advertiser this week with news that its advertising budget will come under the knife, joining Anheuser-Busch.
Late Tuesday, GM -- which owns the Chevrolet and Cadillac car makes -- said it will slash sales and marketing expenditures as part of broader cutbacks to deal with a severe sales slump. The automaker is heavily reliant on big vehicles that are out of favor amid soaring gas prices.
GM is the fourth-largest U.S. advertiser with total domestic ad spend of $3 billion in 2007, according to trade newspaper Advertising Age. GM has been gradually cutting marketing for years due to prior financial strains, and it is also a big proponent of moving large slices of its ad spending to new media. Ad Age estimated that its 2007 ad spend was down 8.7% from 2006.
Anheuser-Busch, the No. 22 U.S. advertiser, announced a deal days ago to sell itself to Belgium brewer InBev, which will load up on debt in the transaction, creating pressure for cost cutting.
The smarter way to stay on top of broadcasting and cable industry. Sign up below