Sunday, 20 May 2012

GM passes on running TV ads during 2013 Super Bowl

Fri May 18 2012

General Motors Co will not advertise in next year’s Super Bowl because it is too expensive, the top marketing executive for the U.S. automaker said three days after the company announced it was dropping paid ads on Facebook Inc.
The 2013 Super Bowl will be broadcast by CBS Corp, which is selling 30-second ads for as much as $4 million (U.S.).

Spots on NBC’s broadcast of this year’s National Football League championship game, the most heavily watched annual event on U.S. television, cost about $3.5 million (U.S.) per 30-second spot. NBC is majority-owned by Comcast Corp.
“We understand the reach the Super Bowl provides, but with the significant increase in price we simply can’t justify the expense,” GM global marketing chief Joel Ewanick said in a statement.
GM, which ran four ads during this year’s Super Bowl broadcast, also chose not to advertise during the Super Bowl in 2009, just ahead of its June filing for bankruptcy protection.
CBS spokesman Dana McClintock declined to comment.
When the New York Giants defeated the New England Patriots for the Super Bowl title in February, more than 111 million Americans tuned in, making it the most-watched TV program in U.S. history.
The NFL championship game annually draws the biggest viewing audience and advertisers jockey for the available TV spots, which makes GM’s absence something CBS is not likely to miss, analysts said.
“A couple of years ago, GM pulled out of the Super Bowl. I don’t think that had too much impact on pricing,” said Brad Adgate, senior vice president of research at research firm Horizon Media. “It’s an opportunity for others. I would venture a guess that someone would pick up the slack and see this as an opportunity.”
The largest advertisers in Super Bowls every year include automakers, movie studios and beer maker Anheuser-Busch InBev .
GM, which ranks behind Procter & Gamble Co and AT&T Inc in advertising spending, spent $1.1 billion on U.S. ads last year, according to ad-tracking firm Kantar Media. Overall, GM’s spending on advertising rose 5.2 per cent last year to $4.48 billion, according to the automaker’s annual report.

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