• General Motors is stepping back from spending big on commercials during big sporting events – and that includes the next Super Bowl.
The next Super Bowl is coming February 2024; armchair sports fans are counting the days. But the 58th edition of the sports extravaganza will not feature any ads by General Motors. This marks the first time since 2021 that the auto giant won’t be buying any ad time at the Super Bowl. Recent years have seen appearances by Will Ferrell and Dr. Evil, but this year, nothing. Ad Age reports that the company is pulling back from advertising in large sports events.
The decision to pull back was confirmed to Motor1 by a GM spokesperson, who explained that the company “continually evaluates our media strategies to ensure they align with our business priorities.”
General Motors didn’t say why it’s changing its strategy, but there are two likely reasons. The recent costly negotiations with unions are being counted into the company’s bottom line now, for one. The expenses associated with airing an advertisement during the Super Bowl ($7 million for 30 seconds last year), along with production costs, mean that a withdrawal represents direct savings of over $10 million.
For two, there has been a slowdown in electric vehicle demand in recent months due to various factors, including vehicle prices and high interest rates. In this context, it may not be worthwhile to invest in expensive commercials for vehicles many buyers simply can’t afford to buy at the moment.
As per GM Authority, it’s also worth noting that the auto giant recently hired a new head of marketing, replacing the one who authorized Super Bowl ads for the last three years.
It will be interesting to see what other automakers do, particularly the Korean brands who have maintained an aggressive approach to electrification. Those companies will undoubtedly seek to promote upcoming models.