Paul Howell
Aug 25, 2011

GM media review gets underway in Asia

DETROIT - General Motors' global US$3 billion media pitch won't include the business for China and India, but there's still plenty of prizes in Asia.

GM media review gets underway in Asia

The automotive giant, which faced bankruptcy during the global financial crisis, has tapped "several global media companies" with a request for proposal on ways to cover its media business around the world. The account would cover all consumer-facing planning and buying operations in support of all media channels, including print, digital, broadcast, search-engine optimisation, and social media.

The company says the pitch is part of its normal review of business procedures. "We’re looking for an innovative model that helps us become more effective in leveraging global marketing opportunities more efficiently,” Joel Ewanick, general manager, vice president and global chief marketing officer of GM.  “We will make a comprehensive assessment of all options before reaching a decision and in fact, may end up validating our current approach.”

That current approach involves more than 20 media buying companies across the gobe.

The media assignments in both China and India have not been included in the review, on the basis that those markets see GM operating as part of several joint ventures with local partners.

In Australia, the US$52.6 million media planning and buying account for fully owned subsidiary GM Holden is in play. Starcom, which currently holds the account, did not comment on the review, a source saying only that it is "business as usual" for the account.

Other key markets in Asia will be Japan, Thailand, Indonesia and New Zealand.

Greg Paull, principal of marketing consultancy R3, says the global pitch is a dramatic move for the automotive giant, it having been "quite a while" since it performed a comprehensive review of any of its marketing operations. He expects a number of agencies to be chosen, with local markets involved in each decision. However, the review should represent a significant consolidation of the present roster.

Source:
Campaign Asia

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