GM Looking to Save $2 Billion in Major Marketing Revamp
General Motors is all about consolidation these days. From cutting down it’s portfolio of brands to just four core entities, trimming the number of individual product lines, powertrains and vehicle architectures, it’s now also moving ahead with plans to streamline and “globalize” it’s marketing operations.
We first got wind of this a couple of months ago, when the General awarded Aegis Group’s Carat advertising arm in London most of its media buying and planning activities, reportedly worth close to $3 billion. The move sidelined a number of small agencies, a trend which is expected to continue, especially as GM’s marketing supremo Joel Ewanick announced that he plans to cut the number of agencies that handle Chevrolet promotions and advertising from around 50 to just five.
Not only that but GM plans to align its marketing in different regions around the world with the theory that a campaign in China, Germany or Brazil, could be adapted for North America. “I’m bringing these guys together and making them talk,” said Ewanick during a recent interview with Automotive News.
Last year, GM spent some $4.48 billion on advertising expenses, though if Ewanick’s plan to streamline Chevrolet ad operations and push forward with a much more consolidated marketing strategy succeeds, the company projects it could save some $2 billion in advertising and marketing costs over five years.
[Source: Automotive News]
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