General Motors decide not to pay $3.8 million for 30 seconds 0
SuperBowl adverts are perhaps the most famous in the world. No other event holds such a large annual anticipation of what adverts will appear. Considering that, you would have thought that General Motors would bid to make another appearance at next year’s Superbowl, especially considering the impact they made this year. However they have decided not to go ahead with next year’s adverts after long consideration. The news was completely unexpected. CBS, the broadcaster have yet to comment on the news.
The news has been considered quite surprising in the United States. General Motors do not want to pay the extra price hike which has been set. The company are looking to completely overhaul their global marketing strategy, meaning the SuperBowl will not be a part of that.
$3.8 million for 30 seconds
There is no doubt that advertising in the SuperBowl event is very effective. They get a worldwide audience like no other, with many adverts becoming iconic and one of the most talked about subjects in the world. However the cost is unable to be justified by General Motors executives. A 30 second slot will cost a staggering $3.8 million which is a 9 per cent increase.
An executive from General Motors said that the cost is too expensive and that it is not worth going for the same slot every year.
No more Facebook adverts
General Motors also delivered another bombshell last week claiming that they would be using Facebook paid for advertising no longer. They believe that these types of adverts do very little when it comes to enticing customers to purchase a car. Instead General Motors are hoping to use their own website to attract customers.
$4.7 billion spent last year
Last year saw an amazing $4.7 billion spent on advertisements. Mr Ewanick is hoping to change all of that. That will mean looking overseas and emphasising on different car markets rather than staying at home in the United States. The large majority of General Motors profits and sales were typically made in the company’s homeland last year. Sales in markets such as Europe, China and other parts of Asia need to increase.
General Motors are moving on from the strategy that made them the world’s number one car supplier last year. They are now looking to maintain their position by implementing radical overhauls. Will it work?