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GM Cuts Ad Budget by $200 Million; Will Shift to Digital, Events

General Motors reduced its national advertising budget from $1.5 billion in 2005 to $1.3 billion for 2006 to cope with the $8.55 billion net loss the company suffered last year, reports Auto Week (via MediaBuyerPlanner). GM has historically led the auto industry in media spending. Brent Dewar, GM vice president of marketing and advertising, says their reign will continue. GM plans to stretch its smaller budget by shifting from traditional magazine and TV ads to alternative media like digital media and events. During the upcoming Winter Olympics, GM will spend $100 million on advertising.

The budget cut comes after GM consolidated its media planning and buying under one roof last year to solve inefficiencies in the media buying process.

As the company focuses more on new product launches and a new price strategy, advertising spending will focus more on full-sized trucks and other products with high revenue potential.


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