Media World Braced for Loss Of GM, Chrysler Ad Buys

A collapse in Detroit could cost media players billions

By Clay Dillow, Newser Staff

Posted Apr 6, 2009 9:34 AM CDT

(Newser) – As the situation in Detroit becomes increasingly perilous, media companies are anxiously waiting to see what happens to the vast marketing dollars—$3 billion in the US last year—General Motors and Chrysler previously poured into advertising. But while vastly decreased spending seems like a foregone conclusion, most media companies have seen this coming, and have taken steps to minimize damage to their bottom lines, Advertising Age reports.

“The domestics have been conditioning us for less revenue dependence for a long time,” a USA Today exec said. Auto titles are most dependent, with Automobile Magazine pulling 21% of ad dollars from GM last year, while Motor Trend collected 16.2%. Television is more insulated, with the largest recipient, CBS, taking in 3.5% of revenue from GM. Still, that’s $229 million in jeopardy.

[Images (2)]

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Car advertising, a huge source of income for media companies and advertising agencies, will undoubtedly decline as Detroit tries to weather the economic crisis. (Chrysler)

Weeds grow in front of a billboard advertising a GM product. (Getty Images)

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All you can really do is try to replace the American automakers with Toyota, Hyundai, Kia and Audi.
- Neal Pilson, former president of CBS Sports

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Media World Braced for Loss Of GM, Chrysler Ad Buys