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(Bloomberg)   GM decides that advertising at the largest single sporting event with the largest TV audience of the year still won't help   (bloomberg.com) divider line 41
    More: Obvious, Super Bowl, Procter & Gamble Co., Hyundai Motor, sporting events, National Football League, Joel Ewanick, AT&T Inc.  
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1436 clicks; posted to Business » on 20 May 2012 at 12:29 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-20 12:35:08 PM  
They could run primetime ads for weeks for the cost of one Superbowl commercial. If they can't guarantee a good return, why spend the money?
 
2012-05-20 12:58:20 PM  

Lsherm: They could run primetime ads for weeks for the cost of one Superbowl commercial. If they can't guarantee a good return, why spend the money?


There arent ant guarantees in advertising.

This will open the door for others to have Monday morning cooler talk. After all, aren't the commercials the best part of the game?

Personally, as a person who paid for their bailout, I am glad to see the unwilling to subsidize the 1% of CBS.
 
2012-05-20 01:08:42 PM  

EnviroDude: Lsherm: They could run primetime ads for weeks for the cost of one Superbowl commercial. If they can't guarantee a good return, why spend the money?

There arent ant guarantees in advertising.

This will open the door for others to have Monday morning cooler talk. After all, aren't the commercials the best part of the game?

Personally, as a person who paid for their bailout, I am glad to see the unwilling to subsidize the 1% of CBS.


Most people watch for the humor in the ads.

Humor doesn't sell vehicles very often. Specs and "feeling" or emotional attachment do.
 
2012-05-20 01:21:29 PM  
Unless they got a new product that they want to get the word out, why bother?

It's like Coca-Cola or Apple. We know who they are. Everyone knows who they are. Do you really need to pay a few million just to spend a few seconds telling us how awesome you are? People who don't like GM still won't like GM. Same with Coke. Same with Apple.

Unless you got a message that needs to get out, buy ad time just to maintain awareness levels. At least that's my non-ad exec opinion.
 
2012-05-20 01:24:12 PM  

ChaffedTitty: EnviroDude: Lsherm: They could run primetime ads for weeks for the cost of one Superbowl commercial. If they can't guarantee a good return, why spend the money?

There arent ant guarantees in advertising.

This will open the door for others to have Monday morning cooler talk. After all, aren't the commercials the best part of the game?

Personally, as a person who paid for their bailout, I am glad to see the unwilling to subsidize the 1% of CBS.

Most people watch for the humor in the ads.

Humor doesn't sell vehicles very often. Specs and "feeling" or emotional attachment do.


VW has successfully used humor to create emotional attachment to their brand for decades, going all the way back to the "Lemon" ads and extending through to the Vader kid today.
 
2012-05-20 01:36:57 PM  

Mrbogey: Unless they got a new product that they want to get the word out, why bother?

It's like Coca-Cola or Apple. We know who they are. Everyone knows who they are. Do you really need to pay a few million just to spend a few seconds telling us how awesome you are? People who don't like GM still won't like GM. Same with Coke. Same with Apple.

Unless you got a message that needs to get out, buy ad time just to maintain awareness levels. At least that's my non-ad exec opinion.


Every once in a while, I get an ad that makes me think "You know, I haven't had that in a long time. I'm going to get one at next opportunity." Not very often, though. I'm inclined to think that advertising is a huge money-sink.
 
2012-05-20 01:42:33 PM  
Aren't going to help what? Is there a position above #1 in the world?
 
2012-05-20 01:50:48 PM  

cameroncrazy1984: Aren't going to help what? Is there a position above #1 in the world?


You can always increase share, even if you are number one.

Advertising is always a judgement call, does the cash out equal even more cash in.

It's a judgement call, and they've decided Facebook and the Super Bowl are not good investments
 
2012-05-20 02:13:44 PM  

EnviroDude: This will open the door for others to have Monday morning cooler talk. After all, aren't the commercials the best part of the game?


At an average (last Superbowl) of $3.5 million for a thirty second slot, you need to come up with some special ad for it to have any impact (you are going to be placed alongside many of the best ads the audience will see all year) which will add at least another million for an ad that likely will only be shown the once.

If you are introducing something new or want to make some big, sudden splash Superbowl ads can work great, if you can put out something special (very high risk). However, if you are just trying to maintain top of mind awareness (which is where GM likely is), you can significantly decrease you CPM by airing many ads elsewhere.

The most expensive regular ads are American Idol, in 2010 costing around half a million. You could get 6 ads for the cost of a 2010 Superbowl ad (~$3 million) and the average viewership was estimated at about 1/4 that of the Superbowl. CPM of Superbowl is about $30 while an American Idol ad is about $20. Of course, running several ads on the same show will have massive overlap of viewers, so you can air ads on several different shows and still maintain a much lower CPM.

If you go to a typical Prime Time TV show the cost is $100-150 thousand per ad. Castle, for instance, was around $133,000 and had a CPM of around $12. Just over 1/3 the CPM of a Superbowl ad.

As I said, Superbowl ads have their use, but the ideas that "They cost so much, they have to be good" or :they have such high ratings you can't go wrong" are incredibly stupid.
 
2012-05-20 02:26:10 PM  
Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW
 
2012-05-20 02:48:21 PM  
How many people have bought a vehicle solely on the strength of a Superbowl commercial?

The reverse did happen, though. I closed my Etrade account the week they aired their superbowl ad featuring the dancing monkey where the caption basically said "Yeah, we just wasted two million dollars".
 
2012-05-20 02:57:28 PM  

beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW


Haven't driven a GM car made in the last 2 years, have you?
 
2012-05-20 02:59:58 PM  

beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW


You do know they have unions in Europe right?

/what a dumbass....
 
2012-05-20 03:06:08 PM  

Mrtraveler01: beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW

You do know they have unions in Europe right?

/what a dumbass....


No they don't, they're just socialis....wait, crap.
 
2012-05-20 03:09:49 PM  
While I understand that based upon the number of viewers, advertising on the Super Bowl may be inexpensive in terms of cost per viewer, I think it's great that a corporation has finally questioned the need for the expense.
 
2012-05-20 03:35:41 PM  
I sure I've never bought anything because of a Super Bowl commercial. I may have been introduced to a company or product I didn't know of before, so product awareness might be a good reason to advertise during the game. Is there anyone that isn't aware of GM?
 
2012-05-20 04:28:24 PM  
The only ads I see for Chevy lately are either for their stupid electric Volt or for their E-Assist technology. From what I can surmise they have no other models or options worth buying.

What pisses me off about their damn Volt commercials is, they go to great lengths to say that people only have to buy gas once in a blue moon, yet they have yet to tell me how much electricity the damn thing uses. How about answering the questions people would need to know before buying one, like does it need a special plug or electrical connection? If so how much does that cost?


Yet they wonder why their advertising dollars aren't paying off.
 
2012-05-20 04:35:39 PM  

beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW


Ford figured that out in 2005 (see 500 (Taurus), Mustang, Focus, F-150 and especially Fusion), GM in 2008 (see Cruze, K1500... fark the Malibu). It wasn't the UAW, it was the beancounters.

Ford and GM are building better cars than the imports these days. Here's looking at you Mopar...
 
2012-05-20 04:45:28 PM  

ReapTheChaos: Yet they wonder why their advertising dollars aren't paying off


Yeah, they're "not paying off" to the tune of being the #1 carmaker in the world....
 
2012-05-20 05:31:25 PM  
I wonder if this will start a domino effect on advertising? All companies second guessing how much they put into ads. Could even spell a giant financial hit to ad giants like google or Facebook.
 
2012-05-20 05:44:23 PM  

Mrtraveler01 & CameronMoron: beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW

You do know they have unions in Europe right?

/what a dumbass....


You know that Unions in Europe aren't a bunch of lazy and greedy assholes like the UAW, right, dumbass?


/want to get paid like a German auto worker?
//then stop being a lazy greedy violent shiathead and make a decent car that people want to buy
 
2012-05-20 05:52:48 PM  
I doubt it.

For the Superbowl in particular, I am pretty sure that the benefits can be demonstrated in a number of cases it is just that GM doesn't think they fit those cases (and I can see why). At most it might contain the increase in ad prices (the price increased by around 25% over the past 2 years). As was said earlier, the Superbowl is rather unique in that many people will pay more attention to the commercials than the game.

As for online advertising (especially social media) it is currently broken. Too many people are still bandwagoning on sites like Facebook. Yes, ads there can pay off quite well for some companies but recently there was a lot of companies that felt pressured into advertising in social media with little or no real justification for it (i.e. cost-benefit). This will change, but it won't necessarily have a large impact because you will likely see some companies doing more advertising on those mediums if they get good numbers and I think the general trend to focusing more on online advertising will continue as TV ads are suffering from PVRs skipping commercials, fragmentation of the audience and a continuing shift towards viewing TV shows over the internet.
 
2012-05-20 06:24:20 PM  

cameroncrazy1984: beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW

Haven't driven a GM car made in the last 2 years, have you?


Maybe he's not into driving cars that burst into flames? There's really no accounting for taste.
 
2012-05-20 07:05:00 PM  
It's not like they've been getting free press with these stories about pulling their ads from places...
 
2012-05-20 07:17:44 PM  

cameroncrazy1984: ReapTheChaos: Yet they wonder why their advertising dollars aren't paying off

Yeah, they're "not paying off" to the tune of being the #1 #2 carmaker in the world....


Fixed, as I'm assuming yourre not talking about Toyota, kidd-o.
 
2012-05-20 08:10:13 PM  
I can see this.
The Superbowl ads seem to be more about the extravagance of the ad itself, rather than the actual results of the money spent.

Has anybody actually tracked any correlation between winning the SB ad game and additional sales?
 
2012-05-20 08:12:02 PM  

IgnorantBliss: beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW

Ford figured that out in 2005 (see 500 (Taurus), Mustang, Focus, F-150 and especially Fusion), GM in 2008 (see Cruze, K1500... fark the Malibu). It wasn't the UAW, it was the beancounters.

Ford and GM are building better cars than the imports these days. Here's looking at you Mopar...


The other thing to understand is that global car makers share technology globally. The idea that a european or Asian car is going to have some kind of magic that makes it better is just silly. The parts commonality of the Chevy cruze and whatever the model is called in Europe is nearly 100 percent, and they are both very good cars
 
2012-05-20 09:07:58 PM  

IgnorantBliss: beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW

Ford figured that out in 2005 (see 500 (Taurus), Mustang, Focus, F-150 and especially Fusion), GM in 2008 (see Cruze, K1500... fark the Malibu). It wasn't the UAW, it was the beancounters.

Ford and GM are building better cars than the imports these days. Here's looking at you Mopar...


Mopar is content to let Tony fix it again.
 
2012-05-20 10:22:23 PM  

Ontos: cameroncrazy1984: ReapTheChaos: Yet they wonder why their advertising dollars aren't paying off

Yeah, they're "not paying off" to the tune of being the #1 #2 carmaker in the world....

Fixed, as I'm assuming yourre not talking about Toyota, kidd-o.


I think GM was #1 in sales data last year, wresting the title away from Toyota who had its entire global manufacturing and distribution network destroyed by the tsunami

GM also doesn't pay taxes, pays zero pct on its debt, still owes billions to the taxpayer and probably wouldn't have the #1 title if not for the government fleet purchases and thousands of dollars worth of subsidies that get rolled into some of its vehicles.

This is kind of like a crippled kid being put on his team's shoulders to drop the ball in the net and then selling the accomplishment as clutch shooting and all-star caliber play.
 
2012-05-20 10:57:46 PM  

Lsherm: They could run primetime ads for weeks for the cost of one Superbowl commercial. If they can't guarantee a good return, why spend the money?


That plus the fact that they can just put 'em on YouTube for free. If I were GM I would still make a big special "super bowl" ad (or series thereof) and release them on the Internets the day of the game. People will literally seek out the advertising and it wouldn't cost them a dime.
 
2012-05-20 11:04:10 PM  

o5iiawah: Ontos: cameroncrazy1984: ReapTheChaos: Yet they wonder why their advertising dollars aren't paying off

Yeah, they're "not paying off" to the tune of being the #1 #2 carmaker in the world....

Fixed, as I'm assuming yourre not talking about Toyota, kidd-o.

I think GM was #1 in sales data last year, wresting the title away from Toyota who had its entire global manufacturing and distribution network destroyed by the tsunami

GM also doesn't pay taxes, pays zero pct on its debt, still owes billions to the taxpayer and probably wouldn't have the #1 title if not for the government fleet purchases and thousands of dollars worth of subsidies that get rolled into some of its vehicles.

This is kind of like a crippled kid being put on his team's shoulders to drop the ball in the net and then selling the accomplishment as clutch shooting and all-star caliber play.


......and GM faces a hilariously unfair set of trade/tariiff agreement with Japan which basically makes it impossible to sell American cars in Japan. And you're also completely ignoring GM's success in China. They're HUGE in China.
 
2012-05-21 12:32:20 AM  

ReapTheChaos: The only ads I see for Chevy lately are either for their stupid electric Volt


The Volt seems like another one of those projects GM started just so -when it fails- they can say, "See! No one really wanted an electric car anyway!"
 
2012-05-21 08:23:47 AM  

HMS_Blinkin: GM also doesn't pay taxes,

not true, and you don't want to go there when you start talking about all of the state supported socialism that goes into Toyota's manufacturing facilities in the South

pays zero pct on its debt
not true some debt went away in chapter 11, that is what tends to happen, but they have no ongoing arrangements to pay 0 debt... And don't even pretend that the Japanese carmakers don't get sweetheart deals and other perks from their governments (meaning Japan, and states like Alabama and Kentucky).

still owes billions to the taxpayer and probably wouldn't have the #1 title if not for the government fleet purchases dubious, do you have any numbers on this

thousands of dollars worth of subsidies that get rolled into some of its vehicles.
blatant lie, GM gets no special subsidy on any of its vehicles, nothing that any other manufacturer, foreign or domestic, would get selling a similar vehicle.
 
2012-05-21 10:28:02 AM  

beta_plus: Mrtraveler01 & CameronMoron: beta_plus: Maybe the UAW should try a new and radical change of building well made cars that people actually want to buy.

/GM makes nice cars in Europe and China
//guess what they don't have in Europe and China - the UAW

You do know they have unions in Europe right?

/what a dumbass....

You know that Unions in Europe aren't a bunch of lazy and greedy assholes like the UAW, right, dumbass?


/want to get paid like a German auto worker?
//then stop being a lazy greedy violent shiathead and make a decent car that people want to buy


Yep it's those lazy greedy union assholes that are FORCING the brilliant hardworking Job Creators that run GM to build the wrong kind of cars. The management at GM has no control what so ever over their products., None. The union guys just start building whatever they want, while the poor, underpaid management workers slave away. It's tragic.
 
2012-05-21 11:01:22 AM  
When did the Superbowl pass the Champions League final in terms of total viewers?
 
2012-05-21 08:32:06 PM  

Philip Francis Queeg: Yep it's those lazy greedy union assholes that are FORCING the brilliant hardworking Job Creators that run GM to build the wrong kind of cars. The management at GM has no control what so ever over their products., None. The union guys just start building whatever they want, while the poor, underpaid management workers slave away. It's tragic.


The board of directors at GM is hand-picked by the Obama administration and includes UAW leadership.
 
2012-05-21 08:40:49 PM  

dforkus: blatant lie, GM gets no special subsidy on any of its vehicles, nothing that any other manufacturer, foreign or domestic, would get selling a similar vehicle.


Link

Price after tax savings. Net price includes the full $7,500 tax credit

Show me another car that comes with a $7,500 tax credit
 
2012-05-22 07:50:07 AM  

o5iiawah: dforkus: blatant lie, GM gets no special subsidy on any of its vehicles, nothing that any other manufacturer, foreign or domestic, would get selling a similar vehicle.

Link

Price after tax savings. Net price includes the full $7,500 tax credit

Show me another car that comes with a $7,500 tax credit


Nissan Leaf
 
2012-05-22 08:08:11 AM  

o5iiawah: Philip Francis Queeg: Yep it's those lazy greedy union assholes that are FORCING the brilliant hardworking Job Creators that run GM to build the wrong kind of cars. The management at GM has no control what so ever over their products., None. The union guys just start building whatever they want, while the poor, underpaid management workers slave away. It's tragic.

The board of directors at GM is hand-picked by the Obama administration and includes UAW leadership.


Next in the parade of your errors.....

About GM: Board of Directors
 
2012-05-22 08:26:58 PM  

Philip Francis Queeg: o5iiawah: Philip Francis Queeg: Yep it's those lazy greedy union assholes that are FORCING the brilliant hardworking Job Creators that run GM to build the wrong kind of cars. The management at GM has no control what so ever over their products., None. The union guys just start building whatever they want, while the poor, underpaid management workers slave away. It's tragic.

The board of directors at GM is hand-picked by the Obama administration and includes UAW leadership.

Next in the parade of your errors.....

About GM: Board of Directors



Girsky

if ignorance becomes a pattern, does that just make you dumb?
 
2012-05-22 10:11:51 PM  

o5iiawah: Philip Francis Queeg: o5iiawah: Philip Francis Queeg: Yep it's those lazy greedy union assholes that are FORCING the brilliant hardworking Job Creators that run GM to build the wrong kind of cars. The management at GM has no control what so ever over their products., None. The union guys just start building whatever they want, while the poor, underpaid management workers slave away. It's tragic.

The board of directors at GM is hand-picked by the Obama administration and includes UAW leadership.

Next in the parade of your errors.....

About GM: Board of Directors


Girsky

if ignorance becomes a pattern, does that just make you dumb?


I don't know are you dumb? David Girsky holds no leadership position in the UAW, and you conveniently ignore the tax credit error. So tell us, are you dishonest or just incredibly, obviously, ignorant?
 
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