Auto Ad Bucks Dry-Up. Buff Books Doomed?

Automotive News [AN, sub] headlines its story about the cutbacks in auto industry ad spending with “We’ll all be singing Motown blues in ’09.” What do you mean “we” white men? According to AN, “Long-term media plans are history, and buys are being made month to month or even day to day. More ‘accountable’ media such as interactive are likely to be stressed.” We’re interactive, aren’t we? Accountable? Anyway, TTAC is a lean, mean news, reviews and rants machine (i.e. it’s run a by a nutter in the attic). But those automotive organizations with high-priced talent and big overheads (i.e. everyone else) are looking at some serious pain. “GM’s recovery plan, turned over to Congress, calls for it to cut a massive $600 million out of its marketing over four years. Ford will trim up to 10 percent of its outlay next year, which could result in another $100 million moving out of the market based on its measured spending of $757 million in the first nine months of the year… Chrysler is staying mum on its spending plans, but it’s a good gamble that the automaker will have to slash a big chunk of the $579 million TNS tracked it spending in the first nine months of this year.” I suggest that Motown’s media cheerleaders and apologists file this one under “be careful what you wish for.” Check out the tone after the jump.

“Another bad sign for the Detroit 3 is that every buck they spend is being scrutinized as they bow and scrape for a bailout from Congress, which will make them even more nervous about any kind of spending that could be perceived as profligate. Car marketers and dealers might know the value of a flashy TV ad campaign, but the question is whether the public will understand that it’s an investment.”

Can’t live with ’em, can’t live without ’em. With ToMoCo and the transplants reining-in their advertising horns, Fortress Detroit’s favorites are seriously NSFWed. And the pillars of that establishment– Car and Driver, Road and Track, Motor Trend, Automobile, etc.– are busy getting hoisted by their own petard. Ad pages are down, ad revenue is down, circulation is down, subscriber revenue is down and newsstand sales are down. Hey, how about a bailout? Just kidding. I hope.

“The upheaval has many media owners ‘terrified of getting screwed’ out of payments, according to an executive at one media outlet. Some magazine representatives reported that automakers are taking longer to pay their media bills, in some cases 120 days, up from 60.”

The Reckoning is here.