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SBD/May 21, 2012/Marketing and Sponsorship
GM Will Forgo Advertising In Super Bowl On CBS This Year, Calling Ads "Too Expensive"
Published May 21, 2012
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BUCKING A TREND: In Detroit, Alisa Priddle noted GM’s decision is the “second major advertising move GM made” last week, after the automaker said earlier in the week that it “would halt advertising on Facebook” (DETROIT FREE PRESS, 5/19). Horizon Media Senior VP & Dir of Research Brad Adgate said, "It's an opportunity for others. I would venture a guess that someone would pick up the slack and see this as an opportunity" (REUTERS, 5/18). In N.Y., Stuart Elliott wrote GM is “not pulling out of the game, because it had not already agreed to buy any spots; rather, it has decided against a buy.” The company is “a mainstay Super Bowl sponsor, but not a continuous one” like A-B InBev. The auto category is “usually the largest in a Super Bowl game, but the number varies each year based on the economy and other factors” (NYTIMES.com, 5/18). AUTOMOTIVE NEWS’ Brian Steinberg wrote GM would “probably like its actions to spur a debate on the price of advertising and the ad efficiency of specific media outlets,” but the company’s move is “not likely to have an effect on Super Bowl advertising.” A GM spokesperson Tom Henderson said that “despite its colorful actions, GM isn't going to be spending less on advertising going forward” (AUTONEWS.com, 5/19).
HYUNDAI RE-UPS: The AP's Tom Krisher cited a source on Friday as saying that CBS “wants 25-to-30-percent more for air time than NBC charged during this year's game.” Krisher noted companies spent an average of $3.5M for a 30-second spot in last season's Super Bowl. Hyundai Senior VP/Marketing Steve Shannon, whose company had five spots before and during Super Bowl XLVI on NBC, said that the automaker is “willing to pay the price increase for next year's game.” Shannon declined to reveal how much the company will spend but said, "We still think it's a terrific value. We're happy to be back next year" (AP, 5/18). Shannon in an e-mail said, "The Super Bowl is a perfect venue for a brand like Hyundai. We are extremely pleased to be an advertiser on the 2013 Super Bowl” (USATODAY.com, 5/19).