General Motors

[HarleyEarl]

GM Displaces P&G As Top Ad Spender, But Autos Begin To Slide by Joe Mandese, Friday, Dec 2, 2005 7:45 AM EST FUELED BY A 7.3 PERCENT boost in its advertising budget, General Motors Corp. emerged as the nation's largest advertiser during the first nine months of 2005, nudging out alpha marketer Procter & Gamble, which has been cutting back on spending in the conventional media measured by syndicated ad spending researcher Nielsen Monitor-Plus. Despite a 5.6 percent cut by DaimlerChrysler, which slipped behind Ford the nation's third largest advertiser, the auto category has been quite healthy, account for $5.4 billion during the first three quarters, and outpacing the overall growth among the top 10 advertising categories (see table below). But according to new ad spending projections for specific industries in 2006 released Thursday by Wall Street securities firm Merrill Lynch, the auto rev-up may not be sustainable. Auto advertising, the largest category for many media, is expected to be essentially flat, climbing just 0.2 percent over 2005, and will trail Merrill Lynch's overall U.S. ad growth projection of 3.4 percent next year (see related story in today's MediaDailyNews). In fact, automotive failed to keep pace with the overall ad industry during 2005. According to Monitor-Plus, the category grew only 2.9 percent during the first nine months, compared with a 4.5 percent rate of growth for the overall U.S. ad marketplace. The auto downturn has been especially devastating for some media more than others. While national automotive ad spending kept pace with the U.S. ad economy, rising 4.7 percent, spending by local dealers actually fell 0.4 percent. In fact, most of the top ad categories have trailed the U.S. ad economy, growing at less than half the total ad marketplace. That's reflected in P&G's slide, but it could be that the cutbacks are less an indicator of underlying health in marketing budgets, as it is a sign of shifts taking place across the marketing mix. The Monitor-Plus data tracks most of the major media, but it does not track other forms of media and marketing that P&G and other marketers may be shifting to. In 2004, P&G began moving toward a communications planning approach in an effort to become less reliant on traditionally measured media. Top 10 Advertisers January - September 2005 Ad Dollars ($ Mil) Change General Motors $2,548 +7.3% Procter & Gamble $2,528 -2.8% Ford Motor Co. $1,640 +3.8% DaimlerChrysler $1,297 -5.6% Time Warner $1,206 +15.5% Johnson & Johnson $1,132 +17.9% Altria Group $971 +15.3% PepsiCo $952 +23.8% Walt Disney Co. $896 -11.2% AT&T $885 -28.9% Top 10 Total $14,059 +1.8% All Advertisers NA +4.5% Source: Nielsen Monitor-Plus. Automotive Advertisers reflects Factory and Dealer Association spending. Based on spending estimates in the following media: Network TV, Cable TV, Spot TV, Syndicated TV, Hispanic TV, Nat'l/Local Magazine, Network/Spot Radio, Outdoor, FSI (CPGs only), Nat'l/Local Newspapers (display ads only), Nat'l/Local Sunday Supplements

[CARBIZ]

I suspect that more than a few media companies would lament GM's demise, considering Toyota doesn't even rank in the top ten. Of course, with CR and others doing its advertising for it, why would Toyota bother. But it does make me wonder why the media, whose paycheques are being paid for by GM, are in such a rush to see it fail.

[FUTURE_OF_GM]

I suspect that more than a few media companies would lament GM's demise, considering Toyota doesn't even rank in the top ten.  Of course, with CR and others doing its advertising for it, why would Toyota bother.
  But it does make me wonder why the media, whose paycheques are being paid for by GM, are in such a rush to see it fail.

[post="52243"]<{POST_SNAPBACK}>[/post]

Toyota HAS the money bankrolled and that's all that matters... GM has been (or will have been in a few years) milked dry.

As far as GM being the biggest.... Well, I can't say that I've seen much of a difference here between GM and Toyota or Honda commercials... In fact, Toyota commercials seem to out pace GM commercials. Now that's looking on a purely bulk basis and I guess is flawed since GM seems to buy into the bigger promotional deals such as Super Bowl and the Emmy's

Still, I think they're wasting their money and a WHOLE lot of fat could be cut in this area. For every 3 sh*tty ads they generate, Toyota has one good ad it seems.

Some of the new Ford stuff looks REALLY good, but again not much presence IMO. Sad to see these numbers and then look at the state in which these companies are in and it displays the effect of outside factors.

[Sixty8panther]

I was going to say.... I see Ford, toyota ads & honda ads just as often on TV as GM... well it's close anyway.

[Guest carpetbagger]

maybe they make cheaper commercials?