mobile-menu-icon
GM Authority

General Motors Will Likely Cut Back On Holiday Season Advertising

General Motors will reduce its holiday season advertising budget this year as a result of supply chain issues stemming from the ongoing global microchip shortage and COVID-19 pandemic.

“We will not be promoting the holiday season as we have been,” said Global Vice President of Cadillac, Rory Harvey, in a recent report from The Street Journal. Harvey added that vehicle supply was currently at a third of normal levels.

Per The Street Journal report, which cites EDO and Pathmatics, General Motors spent roughly $106 million on television commercials for the Cadillac brand in 2019, as well as $16.4 million on digital ads.

General Motors isn’t alone in reducing its holiday advertising as vehicle supplies across the industry dwindle amid a flurry of supply chain disruptions. Pathmatics also indicated that automakers spent $23 million in digital advertising between July and October of 2021, a 10-percent reduction compared to the same time period in 2019. Television advertising was down 5 percent to $57 million, per EDO.

Automotive retail chain AutoNation Inc will also spend less on holiday advertising this year, per AutoNation executive vice president Marc Cannon.

For some automakers the arrival of the holiday season traditionally coincides new ads and incentives – for example, Lexus and its “December to Remember” campaign.

“For us to change it dramatically, it’s too important to the brand. It’s part of our DNA,” said Lexus U.S. vice president for marketing, Vinay Shahani, to The Street Journal. Shahani added that Lexus’ ad spending will be “in the ballpark” of what the automaker usually spends, but that incentives “may not be as compelling.”

Automotive isn’t the only industry where supply chain issues may affect advertising spending, with toys, electronics, and apparel also expected to cut back. Per research institute MoffettNathanson, the total TV ad spend for Q4 of 2021 is estimated to decline 7 percent as compared to 2019.

Subscribe to GM Authority for more General Motors business news and around-the-clock GM news coverage.

Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. Cat that’s thinks it’s a dog. Most of the others are just a waste of money. If you can’t buy a EV of the showroom floor why bring it up. It kind of like these film movies, that won’t be out till next summer. By then nobody may have any money to waste.

    Reply
  2. Dec.used to be a month to possibly get the best deal of the year especially if you could find a last years model that suited your fancy.

    Reply
  3. There’s even a chip shortage to make commercials.

    Reply
  4. Switching from general motors to funeral motors maybe.

    Reply
  5. Penny pinching I see all gm executives have there penny loafers on

    Reply
    1. That’s what I was thinking. -Padding Mary’s purse again!…

      Reply
  6. Likely saving every penny they can in preparation for “Stagflation”

    Reply
  7. Save the advertising budget for when you can get parts to make cars again. I would think aggressive advertising is just going to anger people as they will go to the car lot and find nothing there.

    Reply
  8. Well the commercials were to move product at a very slow time of year. Now with few cars to sell no need yo advertise.

    Reply
  9. byron allen is going to be sooooo pissed!!!!

    Reply
  10. Computer chips won’t help GM deal with their horrible 8speed transmissions that the company sold to their Loyal customers

    Reply
  11. Why even advertise when no vehicles are available. I sit back after a long day at work and I see commercials advertising price savings, lease offers and rollback pricing from all manufacturers yet you can’t find a new vehicle in dealer lots! All you can do is sit back laugh and think about if they put that advertising money into microchip production. Hum!

    Reply

Leave a comment

Cancel