Not only are automakers cutting their ad budgets with traditional media, they’re asking advertising agencies to reduce their fees. General Motors, for example, is reportedly asking its agencies to cut their fee by as much as 20% for 2008 and 2009, according to a report in The Wall Street Journal.
“The collapse in U.S. automobile consumer demand will materially damage the advertising growth rates of traditional media owners,” said Michael Nathanson, a senior analyst at Bernstein Research, in a report to investors this week.
The WSJ has more.
