GM says Super Bowl ads too expensive and bows out

[marmar]

DETROIT - For General Motors, the price isn't right when it comes to an ad during next year's Super Bowl.

The Detroit automaker said Friday that it won't be advertising on the Feb. 3 spectacle because of a steep price hike demanded by CBS, the network broadcasting the game.

"We understand the reach the Super Bowl provides, but with the significant increase in price, we simply can't justify the expense," GM marketing chief Joel Ewanick said in a statement.

A person with knowledge of advertising costs said Friday that CBS wants 25-to-30-percent more for air time than NBC charged during this year's game. Companies spent an average of $3.5 million for a 30-second commercial this year, meaning the increase would be at least $875,000 per ad. The person didn't want to be identified because the ad prices have not been made public. ...........(more)

The complete piece is at: http://www.philly.com/philly/wires/ap/business/20120518_ap_gmsayssuperbowladstooexpensiveandbowsout.html#ixzz1vQLQ1Jht

[exboyfil]

1. I would almost structure an ad campaign to mock the

rates and perhaps run them on the Puppy Bowl and other alternative programming. It would not cost much and the buzz would be free advertising.

[Turbineguy]

2. Oh dear.....

dontcha jest hate it when the Free Market rears its ugly head?

That's right folks! Step right up! And the first 1500 of you that buy this car, pay for the ad! Now then, who's gonna be first?

[exboyfil]

3. Actually I think it is a wonderful free market response

I guess the CEO from GM missed his golf game with the CEO of CBS. I have thought for years that companies that advertisement at the Super Bowl (with a few rare exceptions) are out of their minds.

[CurtEastPoint]

4. GM also dropped Facebook as 'not worth it.' Good for them.

[JNelson6563]

5. Yes, good to see these smart calls.

Hi CurtEastPoint! I grew up in St. Clair Shores.

Julie

[marmar]

6. There's also an East Point, GA, near Atlanta.

Our Eastpointe has an "e"

[JNelson6563]

9. heh Then my post should render a "Huh?"

I moved away around when East Detroit magically changed into Eastpointe. A little lame ~ tho' it's true ~ but that's the excuse I'm goin' with.

Thanks for the correction, I hope this exchange clears it up for CurtEastPoint.

Julie

[Motown_Johnny]

10. I drive through SCS almost every day

since I work in Roseville and live near Mack and Moross.


(St. Clare grade school and Notre Dame high)

[JNelson6563]

12. Grew up by 10 Mile & Jefferson.

One of my brothers went to Notre Dame!

I'm in Traverse City now and oh it's beautiful, but, this was lumber baron country, I miss those great brick houses from your/my old area. It's rare to find a brick home here.

But somehow I muddle through up here...in paradise...

Let me know if you and yours ever make it up this way!

Julie

[Motown_Johnny]

15. Class of '81

and I don't get that far up north very often. When I do it tends to be on the east side. A friend has a cottage on Presque Isle.

[JNelson6563]

16. Wow! Class of '81 Lakeview here.

I grew up an "east side girl" Detroit-wise but now I'm a "west side girl" state-wise. Still, with a dad who spent his career at GM & as one who enjoyed the auto culture of Detroit immensely, I feel as though a part of me will always be at least part "motor city girl".

Cheers~

Julie

[Motown_Johnny]

18. I did 6 weeks of summer school at Lakeview

I can't remember the year but it was a science class....



No, I am good at science but I was a bad bad bad teenager. I got caught skipping A LOT!

[CurtEastPoint]

13. Yeah, I'm in EP, GA. Two words. I have heard of Ep, MI, one word.

[coalition_unwilling]

7. I love the smell of capitalists shitting on each other in the morning - n/t

[Motown_Johnny]

8. ~$4.25 Million for a 30 second ad...

... and a Chevy Volt costs ~$50,000.00 (less but I am rounding up).



So 4,250,000 / 50,000 = 85




Maybe they should raffle off 75 Volts for anyone who takes a test drive, or reimburse the cost of the car for 75 buyers, and just switch some of their usual ads to promote it. Maybe give away one per state plus reimbursing the cost to 25 buyers picked at random.


I can think of a lot of ways to spend $4.25 million to advertise beyond TV ads on the Super Bowl.

[JNelson6563]

11. Lots of good ideas!

And I have to believe if they are smart enough to make these calls of skipping ridiculous money-pits, they'll be smart enough to come up with something else that will prove more effective.

Julie~~Go Lions!

[msu2ba]

14. And that's just the airtime.

Don't forget about production costs for Super Bowl-level ads.

[JNelson6563]

17. Very good point!