According to reports General Motors has reduced advertisement expenditure by more than $600 million last year. TNS Media Intelligence had reported that for the first 11 months of the year the ad spend fell considerable to $2.03 billion from $2.65 billion in the year 2005. On the other hand, GM had contended the figure saying that it has cut 10 percent or $300 million in 2006.
In the meanwhile, TNS is strongly sticking to its original number and it has said that the methodology it employs to measure spending have not changed from 2005 to 2006. As a matter of fact, an increasing share of GM’s advertisement budget have now started moving towards digital media as the company wants to connect with the online audience.
Irrespective of the standoff whether there was substantial advertisement expenditure cut or not, there is one thing very clear that the second largest advertiser if the US is now shifting towards new media for advertisement. Therefore, the trend can be well dubbed as a warning to traditional media which facing a very stiff competition from digital platforms.
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