Advertising Age, the industry rag read by Mad Men worldwide, found a simple reason for GM first unfriending Facebook, followed by a much bigger whopper, a “No thanks” to Super Bowl advertising. Ad Age says the decision is driven by the simple need to save money.
A while ago, we told you that there are two quick fixes if a car company wants to make its books look better: Cut marketing expenses, or cut R&D. Or, as in the case of GM, do both.
Meanwhile on the marketing side, GM’s vhief marketing honcho Joel Ewanick “has been on a mission to wring $2 billion over five years out of marketing costs for the company’s flagship Chevrolet,” Ad Age says.
Ad Age also thinks that Ewanick is driving a hard bargain. Just like the Facebook announcement was timed to rain just a little bit onto Facebook’s IPO parade, the Super Bowl news was strategically placed at the start of the annual upfront marketplace, where ad buyers strike deals for commercial time in the coming TV season. CBS wanted to raise the price of a 2013 Super Bowl ad to $4 million, up from an average of $3.5 million for a 30-second spot NBC got this year.