New technology usually provides a good scapegoat for falling ad revenue at the networks, but why should the Internet and DVR hog all the fun? In addition to hordes of lost manufacturing jobs, escalating gas prices, and competition from cheap imports, the beleaguered auto industry is soon to be accountable for millions in lost ad revenue.
The New York Times reports that downturns in the industry will account for huge losses in ad revenue, with a close to $3 million decline in advertising for media outlets by the end of this year.
With auto sales at their lowest since 1993, advertising cutbacks don't seem like a surprising move, but the auto industry has as of yet staved off their hemorrhaging sales numbers, remaining a steady source of advertising income for television, newspapers, and magazines. That seems to be changing now:
Earlier this year, GM's announcement that it would move half of its $3 billion advertising online looked like a forward thinking approach but just last week, the company announced they would be slashing their ad budget — and asked ad agencies to cut their fees by as much as 20%.
The company's recent woes are familiar throughout the industry -- most evident in its recently declared interest to sell former offroad star Hummer. With consumers increasingly interested in fuel efficiency and environmental concerns, auto manufacturers are going to have to produce more nimble products or die trying. Fears that television advertising may fall by the wayside in the process are not closer than they appear.
