GM Autos slash their Advertising spend but not online.
GM have slashed their advertising budget across the board all except in their internet ad spending, has advertising reached the tipping point? Is the web the Holy Grail of advertising now?
The facts point to newspapers as being the worst hit.
(the chart compares January through November ‘05 to spending during the same period in ‘06):
Newspapers - 62.8
Magazines - 17.4
TV - 15.1
Outdoor- 14.0
Radion- 11.8
Internet + 19.4
Source: TNS Media Intelligence
J.D. Power & Associates says that 67.5 percent of new-vehicle shoppers are using the internet in some way to shop for their vehicle; in major markets this number is significantly higher.
As the domestic auto market reorganizes and reasserts its market share, there are bound to be further cuts in media spending. But with a proven ability to reach the right customer at the right time with the right message, online will emerge as the most efficient spend and will continue to see strong gains for years to come.
