For General Motors, the price isn’t right when it comes to an ad during next year’s Super Bowl.
The U.S. based automaker will not advertise in next year’s Super Bowl because it is too expensive, a top marketing executive said, just days after GM announced it was dropping paid ads on Facebook.
“We understand the reach the Super Bowl provides, but with the significant increase in price, we simply can’t justify the expense,” said Global Chief Marketing Officer Joel Ewanick in a statement regarding the Feb. 3, 2013 football game.
The 2013 Super Bowl will be broadcast by CBS Corp, which is selling 30-second ads for as much as $4 million. Spots on NBC’s broadcast of this year’s National Football League championship game, the most heavily watched annual event on U.S. television, cost about $3.5 million per 30-second spot. NBC is majority-owned by Comcast Corp.
Earlier this year, a top CBS sales official told the trade publication AdvertisingAge that prices for Super Bowl spots would be raised. CBS has said spots for next year’s game are selling well.
It’s Mr. Ewanick’s second high-profile move this week as he shakes up marketing at GM, the nation’s third-largest buyer of media advertizing, rattling ad shops and media companies along the way.
GM and Facebook
GM announced the decision to drop Facebook paid ads on Tuesday in what was the first highly visible crack in Facebook’s strategy and illustrated doubts about its perceived advantage over traditional media.
The $10 million the automotive company invested in Facebook ads may seem like a hefty figure. But, according to Kantar Media, GM’s total ad spending in 2011 topped $1.8 billion.
GM’s rationale for the move, global CMO Joel Ewanick originally told the Wall Street Journal, was that his company simply was finding its paid advertising on Facebook ineffective.
However, Facebook criticized GM’s approach of having multiple firms managing its advertising for the site, according to another person familiar with the matter. GM has been revamping its marketing, hiring a new ad firm to buy its media.
Facebook rakes in most of its money through advertisers, the company’s IPO filing confirmed. Last year, 85 percent of its revenue came from ads – about $3.15 billion, some from big-name advertisers including Nike, Ford, and Wal-Mart.