General Motors Adapts to Baseball Strike, Allocates Advertising Dollars Elsewhere

Strategic Insights -

General Motors is reorienting its advertising strategy in the wake of the baseball strike, aiming to maximize its $35 million media budget despite the loss of baseball advertising opportunities. The company's planned advertising blitz for various new products will proceed as scheduled, with a focus on other sports and events. GM's reallocation of ad dollars will benefit collegiate and professional football, as well as prime-time programs on networks like ABC, NBC, and Fox Broadcasting Co.

Key Takeaways:

  • General Motors has secured a $280 million-plus, six-year deal with the Baseball Network, Major League Baseball's TV network, despite the cancellation of the baseball season due to a strike.
  • GM's advertising campaign for its new products is largely unaffected by the strike, with a focus on other sports and events, including football and special events.
  • Chevrolet, GM's dominant division, will continue to promote its redesigned Monte Carlo, Lumina, and Blazer sport-utility through various media channels, including newspaper and magazine advertising, radio, and outdoor billboards.
  • Toyota, another automaker affected by the strike, will now place its ads on substitute programming and other sporting events.
  • The strike has damaged the image of Major League Baseball, with 53.9% of baseball fans polled by The Dohring Co. stating they would be less interested in professional baseball next season.
  • General Motors has reaffirmed its commitment to baseball, with filmmaker Ken Burns' documentary "Baseball" serving as a GM Mark of Excellence Presentation.

Statistics:

  • 53.9% of baseball fans polled by The Dohring Co. say they would be less interested in professional baseball next season.
  • 46% of respondents overall said they'd be less interested in the game.
  • General Motors' advertising budget: $35 million.
  • Duration of GM's deal with the Baseball Network: six years, valued at $280 million-plus.
  • Newspaper and magazine advertising spend: undetermined.
  • Radio and outdoor billboard advertising spend: undetermined.

Sources:

  • Advertising Age
  • General Motors officials (John Maciarz, spokesman for sales, service, and marketing for GM's North American Operations)
  • The Dohring Co. (Jay Houghton, senior consultant; 400-person overnight poll)
  • Chevrolet (Thomas Pyden, director of sales and marketing communications)
  • Toyota Motor Sales U.S.A. Inc. (Nancy Hubbell, media relations manager)
  • Public Broadcasting System (airing of filmmaker Ken Burns' documentary "Baseball")