General Motors has signaled that it will not radically cut back on its advertising budget because it is in bankruptcy.
In a development reported Monday by The Wall Street Journal, GM said it will continue to budget between $40 million and $50 million per month for advertising as it works its way out of bankruptcy. The article by Suzanne Vranica notes that while this is a considerable drop from GM’s free-spending past, it’s about as much as it had been spending in the months before its June 1 bankruptcy filing.
For years, GM, with its $2 billion-plus annual ad budget, was the nation’s second-largest advertiser, behind only Procter & Gamble. GM began cutting its ad budget in 2008, and dropped to third place, behind Verizon Communications.
It wasn’t immediately clear what slice of the GM ad-spending pie will be going to newspapers.
The Journal said GM will focus most of its ad spending on GM vehicle brands such as Chevrolet and Buick. Storylines will emphasize the “New GM,” and could feature the automaker’s employees, the paper said.