Tag: Newspapers

Why does GM invest so much money in the Media Titans who have damaged its Reputation?

In my last post, I made the case that the media industry, not the unions or debt holders, are the biggest obstacle to GM’s success in the US market. However, despite decades of front-page articles and headlines criticizing GM’s management team, the company has remained loyal to traditional advertising approaches to drive demand for its products. I find it particularly ironic that GM continues to pump hundreds of millions of dollars into the very companies that are profiting from its demise. Consider that in 2009, GM has spent $112M on newspaper advertising this year alone, which amounts to 27% of its overall advertising budget.