Source Marketing Direct agree with GM: Advertising is too expensive

  • AUTHOR: Guest
  • 30th May 2012
Source Marketing Direct agree with GM: Advertising is too expensive

Source Marketing Agree with the announcement from General Motors Group, GM, that they would not use media giant Facebook for advertising, nor would they be running advertisements during the famous super bowl prime time this year. The reason simply – it is too expensive.

Source Marketing Direct agrees and claim not only are traditional forms of advertising becoming more expensive, they are also losing their effectiveness as consumers look for a more personalised connection to products and services.

General Motors is the world’s largest automotive producer. The announcement that they will be taking a new strategy towards their advertising has caused a real stir amongst their competitors, and in the world of advertising too. GM’s decision to cut the $10 million budget set aside for advertising through Facebook has literally shocked the world. GM spokesperson Pat Morrissey said “We were getting a lot out of our content, a lot out of our Facebook pages and brands, but we didn’t feel we were getting the ROI on the advertising part of it.” This came on the week Facebook publicize its first initial public offering which is estimated to be around the value of $100 billion, but this public announcement from GM that Facebook advertising is not reaching consumers or turning into a profit could be devastating for Facebook.

Source Marketing Direct, Managing Director, Hector Montalvo commented “Our experience has seen a drastic decline in businesses using expensive media based advertising as their primary solution to marketing and selling their products and services. We are increasingly seeing more and more businesses look for an alternative way to communicate to consumers. I don’t think it’s surprising that GM is reconsidering their options, in fact as a through and through direct seller I have been waiting for the day a big player like this to make a stand.”

The super bowl has for many years been a very popularly watched sporting event. Source Marketing Direct revealed over the last two years, it was the single most watched televised event worldwide (Los Angeles Times, Jan 2012). This year 30 second advertising slots were sold for $3.5US million each. GM said while the super bowl advertisements have ‘reach’ they are just too expensive to consider. Hector Montalvo of Source Marketing Direct continued “Having attended the super bowl last year to support my home town team and I have to admit I am a huge fan of the event itself. However I do doubt the effectiveness of building a lasting brand experience with customers through a really expensive 30 seconds advertisement. I believe as human beings, people need more than that and they look a little deeper than the pockets of the advertising department. Customers need people to speak too, they have questions to ask and TV doesn’t allow for that, people are just no longer that sensitive to TV.”

Source Marketing Direct believes that marketing and selling products should not be left wholly to media based advertising. The firm specialises in a direct approach, building effective and productive relationship with consumers through event based presentations. The company has seen unprecedented growth since opening in the UK SME market in 2008, operating in 6 locations in the UK currently.


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