GM To Boost Digital Spending
This is good news for online advertising companies, because it indicates that more large companies are beginning to see the Internet as a viable advertising resource. Currently, GM is spending about 10-15% of their ad dollars online, but according Merrill Lynch analyst Lauren Rich Fine, even more of the companyâ€™s ad dollars could be headed to the digital marketplace soon.
Fine told AdWeek, â€œOnline as a percent of total spend will rise as will the total dollars spent online despite the company’s continued auto sales challenges.â€
As part of the change, General Motors is reportedly also telling local dealers to begin upping their online advertising dollars. Many of the local dealers are spending less than 10% of their budgets online. As a whole, GM is seeing a loss of revenue and widespread spending cuts because of the automotive market.
The change contradicts a recent Yahoo report that online advertising for auto dealers was softening.
The online spending change will be good for Digitas; GM is a client of theirs. In July, Digitas lowered their revenue predictions because of GM budget cuts.