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To Interpublic, From GM, Re: Goodbye
By David Utter
Expert Author
Article Date: 2005-05-12
In the wake of a debt downgrade and slumping sales, the Detroit automaker changes advertising agencies.
Publicis Groupe SA comes out the winner as GM ends its relationship with Interpublic Group. Cost savings were cited as the reason for the change.
GM and its associated dealers spent an estimated $3.6 billion USD with Interpublic last year, and there is a sense the company didn't get much back on its investment, particularly on brand recognition.
In a Chicago Tribune article, brand consulting firm president Robert Passikoff of Brand Keys speculated on this topic. "Ask your friends, `What does Volvo stand for?' The answer may be safety," said Mr. Passikoff. "If you ask `What does Pontiac stand for?' there will be a pause."
And the marketplace has numerous recognizable brands, including in the automotive sector. Though GM publicly states merging its ad planning with the media planning already done by Publicis will save money, the company has to hope new advertising will shake up moribund sales.
But the realities of the market, where gas savers like the Toyota Prius command premium pricing while GM SUVs sit on lots, may have more to do with the company's current situation.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.
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