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General Motors to Spend $1.5 Billion on Online Advertising



I’ve been blogging about how traditional companies are putting more of their advertising budgets online and more local businesses are going online for the first time. Here’s more evidence.

General Motors is leading the auto industry in shifting their traditional advertising campaigns to online marketing. The third-largest advertiser will spend half of their $3 billion advertising budget online. They give it 3 years to get there. Last year GM spent $197 million online.

How will they spend it?
The auto industry spends a lot on advertising – spending $9.42 billion on advertising last year. I’m sure they’ll do plenty of searh marketing but GM also mentioned advertising in games, on widgets, and other online advertising.

Less Traditional Advertising More Online Marketing
It’s astounding to see the drop in TV ads, billboards, magazines, radio, and newspaper advertising. That’s just the auto industry and I imagine other industries could tell a similar story. This graphic by from TNS Media Intelligence is the illustration of my point.

People Research Cars Online
The reality is that people may get branding from TV and print ads, but the long-term approach and focus is online. People go online first to research big purchases (and just about everything else).

Here’s the reality – “…automakers and many of their dealers accept that the purchase process increasingly begins, and sometimes even effectively ends, on the internet.”

“Online is getting to the point where it may be more important than the 30-second TV spot.”
-Hyundai Motor America VP of Marketing Joel Ewanick

In a recession or whatever is happening to our country right now, advertising spend is and will continue to shift online. It costs less, is trackable, and it’s where the growth of our economy and future lies.