GM has slashed sponsorship budget by 60 percent since bankruptcy

[NINETY EIGHT REGENCY 132]

GM has slashed sponsorship budget by 60 percent since bankruptcy filing

03/25/2010, 2:14 PMBY DREW JOHNSON

Thanks to a renewed focus on grass-roots marketing efforts, General Motors has managed to cut its sponsorship budget by 60 percent compared to pre-bankruptcy levels. GM set the tone for its revamped marketing efforts during its June 2009 bankruptcy, eliminating 54 ad contracts.

General Motors started its marketing overhaul in late 2008, cutting Tiger Woods as the spokesman for its Buick brand. Since then, GM has eliminated a number of other high-dollar contracts, including deals with the PGA, NASCAR, the NCAA and the WNBA.

“I don’t think you’ll see us doing eight or nine mega-rights deals any longer,” Steve Tihanyi, GM’s general director of marketing services, said. “We think we can spend the money a little more effectively and ultimately get more bang for our buck.”

GM still has big-name deals with the NFL and Major League Baseball, but is now putting a greater focus on grass-roots marketing efforts, such as sponsorships of youth sports.

Between 2006 and 2008, GM spent an estimated $500 million on sponsorships and related ad campaigns. GM is now spending about half of that, with pre-bankruptcy ad spending levels not expected to return for at least five years. Still, GM’s post-bankruptcy ad spending places it in the top 10 of corporate America.

LINK:

http://www.leftlanenews.com/gm-has-slashed-sponsorship-budget-by-60-percent-since-bankruptcy-filing.html

[daves87rs 278]

About time-Money could be used toward product.

[hyperv6 774]

So much of this marketing was wasted. They could have used it in better print and TV stops vs some NCAA something.

My company picked up their car show deal. The show people are thrilled we send people to the events. GM never did. All they did was pay money and put up signs.

Marketing is worthless with out follow through.