Automotive giant General Motors is slashing its advertising budget this year to $ 1.3 billion, down from $1.5 Billion in 2005, according to a report published by Auto Week. How is this cut in ad-spending going to affect the Hispanic print market? Portada® caught up with some industry insiders to find out.
Although unable to discuss specific numbers regarding their advertising budget, Martha Thomas, a GM Media Planner who manages the upscale Hummer and Cadillac brands did say, “whenever there are budget cuts, they affect all areas across the board.” Ms. Thomas mentioned that they are focusing heavily on broadcast advertising, with commercial spots on Univision. However regarding print advertising, Thomas did acknowledge that “Right now we have no specific plans in place to target the Hispanic market through print.”
Roberto Sroka of Megazines Publications, which publishes the automagazine Sobre Ruedas, says that he has not noticed anything out of the ordinary. “Well, all the orders are in for 2006 and I would say that it is pretty much business as usual.” Asked whether he saw GM's U.S. $100 million advertising investment in this year's Olympic Games as a resource allocation decision that would affect Hispanic print, he said, “Not really. I think they are simply trying to capitalize on an opportunity that comes just once every four years.”
So as it now stands, the jury is out regarding what sort of impact GM's budget reduction will have on Hispanic print. Traditionally, GM has led the auto industry in ad-spending and Brent Dewar, GM Vice President of Marketing and Advertising vows that this will continue. Look to Portada® to report on these and other developments as they unfold in the coming year.