IPG Gains In GM Reorganization

Interpublic Group of Cos. emerged the clear winner when General Motors unveiled its new field marketing strategy last week. The losers: Some 60 agencies with local ad assignments for GM’s Dealer Marketing Groups in 211 markets.
As of April 1, GM will stop funding the DMGs, eliminating the role of local shops. About $1 billion in spot media buying for GM lines handled by the regional agencies will be consolidated at IPG’s Local Communications unit. The consolidation will give the automaker “20-25 percent better cost efficiency,” said Phil Guarascio, the car maker’s general manager of advertising and corporate marketing.