Cost of Business
November 19th, 2008 by Jon Taplin
When the dogs won’t eat your dog food, what do you do?
Advertise.
According to Nielsen Research, GM spent $1.24 Billion in the fist six months of 2008 on advertising to sell 2 million vehicles.
What a business model.
Avg $620 per vehicle. What’s their avg vehicle sales price? That’d be 2% of a $31,000 vehicle. Is that high for a CPA (Cost Per Acquisition) for a manufactured product? Just asking.
Avg $620 per vehicle. What’s their avg vehicle sales price? That’d be 2% of a $31,000 vehicle. Is that high for a CPA (Cost Per Acquisition) for a manufactured product? Just asking.
Oh, so I typo’ed my email address and got “moderation”? Whatever.
Oh, so I typo’ed my email address and got “moderation”? Whatever.
The group really scared about this is likely to be advertisers. Car work – especially in the commercial production community – is like the anchor tenant in a mall. Loose that from the mix, and all of a sudden the ecology that makes everything else viable takes a big hit.
Here’s a piece from the Health Care blog about trouble in pharma land – another major tent-pole in the spot making trade.
Given the larger role played by advertisers in the new media landscape (esp. all those innovative new services that think they’ll live by attracting ad dollars) these are disconcerting developments.
And given that the broader economic split that’s just run its course – where 70% of economic activity was consumer driven – I suspect that the the great reconstitution is going to see things getting very mean and lean on Madison Avenue in the coming years, and whatever emerges is unlikely to bear much resemblance to the current incumbents.
The group really scared about this is likely to be advertisers. Car work – especially in the commercial production community – is like the anchor tenant in a mall. Loose that from the mix, and all of a sudden the ecology that makes everything else viable takes a big hit.
Here’s a piece from the Health Care blog about trouble in pharma land – another major tent-pole in the spot making trade.
Given the larger role played by advertisers in the new media landscape (esp. all those innovative new services that think they’ll live by attracting ad dollars) these are disconcerting developments.
And given that the broader economic split that’s just run its course – where 70% of economic activity was consumer driven – I suspect that the the great reconstitution is going to see things getting very mean and lean on Madison Avenue in the coming years, and whatever emerges is unlikely to bear much resemblance to the current incumbents.
Wow. Think of how much free publicity + increased sales they could have got if they had a “Buy a Car, Win a Billion Dollars” promotion. You buy a GM car in 2008, you get a lottery ticket for a $1 billion dollar drawing held on New Year’s Eve. I think it would have been a better use of their money.
Wow. Think of how much free publicity + increased sales they could have got if they had a “Buy a Car, Win a Billion Dollars” promotion. You buy a GM car in 2008, you get a lottery ticket for a $1 billion dollar drawing held on New Year’s Eve. I think it would have been a better use of their money.
If things continue as they have, put options on Google might pay. I’m waiting to see where the advertising dollars go. IOW, will they reduce buys to the new media, increase them or stay pat which is the same as reducing them in that particular segment of selling?
If things continue as they have, put options on Google might pay. I’m waiting to see where the advertising dollars go. IOW, will they reduce buys to the new media, increase them or stay pat which is the same as reducing them in that particular segment of selling?
Dogs don’t watch tv…..
In 1977 when the President of GM was asked at a news conference how they would make cars as good as the Japanese, he said “We’re not trying to make cars….we’re trying to make money.” I don’t think they do either one well.
Dogs don’t watch tv…..
In 1977 when the President of GM was asked at a news conference how they would make cars as good as the Japanese, he said “We’re not trying to make cars….we’re trying to make money.” I don’t think they do either one well.
Don’t something like 90% of new products fail? Companies don’t keep advertising tproducts that aren’t selling; they’re permanently shelved.
The American auto industry has a problem — cars are all its got. So they fight the inevitable. Seems like a bailout would be putting your money on the guy you know is going to lose the championship fight.
Don’t something like 90% of new products fail? Companies don’t keep advertising tproducts that aren’t selling; they’re permanently shelved.
The American auto industry has a problem — cars are all its got. So they fight the inevitable. Seems like a bailout would be putting your money on the guy you know is going to lose the championship fight.
Waxman replaces Dingell. How’s that for “go pound salt” to the companies formerly know as “the Big three”.
Once again, GM never mourned nor looked back as Crosley (say high former plant workers in Marion and Richmond, oh, and say “By By” to America’s tin engined 50 mpg car), Kaiser-Frazer (say high Willow Run), Packard, and Studebaker (later Studebaker-Packard Corporation as in say high South Bend), Nash (so many places so little time), Hudson (Can you dominate NASCAR and still go under dudes? Yep. “By By” Hornet and all your speed, milage in class and endurance records, and High from a small aging section of Detroit).
I know I’ve done this tribute roll call before (and am sure I’ve left a bunch off) and could go on and on about the innovations lost with each closure…
BUT, the point is none of the Big Three championed bail outs, or said what a tragic day for American workers, or shed a tear at the demise of any of these marques. So sue me if I have a momentary sense of history, irony, and karma all in one, and fail to shed a tear for the demise of American arrogance. And yeh, it’s going to hurt, hurt, hurt… but that’s going to come no matter how much money you sink into these rat holes.
Chapter 11
Business plans that look like they will work
then some possible loans.
Waxman replaces Dingell. How’s that for “go pound salt” to the companies formerly know as “the Big three”.
Once again, GM never mourned nor looked back as Crosley (say high former plant workers in Marion and Richmond, oh, and say “By By” to America’s tin engined 50 mpg car), Kaiser-Frazer (say high Willow Run), Packard, and Studebaker (later Studebaker-Packard Corporation as in say high South Bend), Nash (so many places so little time), Hudson (Can you dominate NASCAR and still go under dudes? Yep. “By By” Hornet and all your speed, milage in class and endurance records, and High from a small aging section of Detroit).
I know I’ve done this tribute roll call before (and am sure I’ve left a bunch off) and could go on and on about the innovations lost with each closure…
BUT, the point is none of the Big Three championed bail outs, or said what a tragic day for American workers, or shed a tear at the demise of any of these marques. So sue me if I have a momentary sense of history, irony, and karma all in one, and fail to shed a tear for the demise of American arrogance. And yeh, it’s going to hurt, hurt, hurt… but that’s going to come no matter how much money you sink into these rat holes.
Chapter 11
Business plans that look like they will work
then some possible loans.
Waxman replaces Dingell. How’s that for “go pound salt” to the companies formerly know as “the Big three”.
Once again, GM never mourned nor looked back as Crosley (say high former plant workers in Marion and Richmond, oh, and say “By By” to America’s tin engined 50 mpg car), Kaiser-Frazer (say high Willow Run), Packard, and Studebaker (later Studebaker-Packard Corporation as in say high South Bend), Nash (so many places so little time), Hudson (Can you dominate NASCAR and still go under dudes? Yep. “By By” Hornet and all your speed, milage in class and endurance records, and High from a small aging section of Detroit).
I know I’ve done this tribute roll call before (and am sure I’ve left a bunch off) and could go on and on about the innovations lost with each closure…
BUT, the point is none of the Big Three championed bail outs, or said what a tragic day for American workers, or shed a tear at the demise of any of these marques. So sue me if I have a momentary sense of history, irony, and karma all in one, and fail to shed a tear for the demise of American arrogance. And yeh, it’s going to hurt, hurt, hurt… but that’s going to come no matter how much money you sink into these rat holes.
Chapter 11
Business plans that look like they will work
then some possible loans.
errata: say “Hi” not “High” though the latter is sure to follow the further devastation of the Thumb of Michigan and all affiliated supplier regions.
errata: say “Hi” not “High” though the latter is sure to follow the further devastation of the Thumb of Michigan and all affiliated supplier regions.
errata: say “Hi” not “High” though the latter is sure to follow the further devastation of the Thumb of Michigan and all affiliated supplier regions.
My 6’2 hillbilly Seabee Dad drove a Crosley pickup and hand built winning races cars using those ‘tin engines’. He still had one in a crate, never used, when he died a few years ago. He said it was the epitome of keep it simple. He owned an English Ford, a Renault Dauphine and an Izetta. We had a pre-Sport Corvair and a Borgward (elegant beastie) and the original Mazda Wankel (his favorite). I was raised to believe that 25 cents a gallon was too much. As long as the heater works, I won’t mourn the electric windows.
We need an American auto industry. We don’t need this generation of management. What I fear is the administration will let the furor die down and then bail them out anyway. An image of too-chummy-east-coast-school holdup artists is emerging to be contrasted with the fast-buck computer holdup artists who claimed to be bringing change.
How the heck do we get back control of our own economy when we are repeatedly ransoming it from our own pirates?
My 6’2 hillbilly Seabee Dad drove a Crosley pickup and hand built winning races cars using those ‘tin engines’. He still had one in a crate, never used, when he died a few years ago. He said it was the epitome of keep it simple. He owned an English Ford, a Renault Dauphine and an Izetta. We had a pre-Sport Corvair and a Borgward (elegant beastie) and the original Mazda Wankel (his favorite). I was raised to believe that 25 cents a gallon was too much. As long as the heater works, I won’t mourn the electric windows.
We need an American auto industry. We don’t need this generation of management. What I fear is the administration will let the furor die down and then bail them out anyway. An image of too-chummy-east-coast-school holdup artists is emerging to be contrasted with the fast-buck computer holdup artists who claimed to be bringing change.
How the heck do we get back control of our own economy when we are repeatedly ransoming it from our own pirates?
My 6’2 hillbilly Seabee Dad drove a Crosley pickup and hand built winning races cars using those ‘tin engines’. He still had one in a crate, never used, when he died a few years ago. He said it was the epitome of keep it simple. He owned an English Ford, a Renault Dauphine and an Izetta. We had a pre-Sport Corvair and a Borgward (elegant beastie) and the original Mazda Wankel (his favorite). I was raised to believe that 25 cents a gallon was too much. As long as the heater works, I won’t mourn the electric windows.
We need an American auto industry. We don’t need this generation of management. What I fear is the administration will let the furor die down and then bail them out anyway. An image of too-chummy-east-coast-school holdup artists is emerging to be contrasted with the fast-buck computer holdup artists who claimed to be bringing change.
How the heck do we get back control of our own economy when we are repeatedly ransoming it from our own pirates?
One of several reasons that I can almost never sit through more than about one quarter of an NFL game is the endless barrage of pickup commercials that scream, “YOU! Yes, YOU! You are not even HALF OF A MAN! And your woman knows it! Buy this truck and at long last FEEL something!”
And there certainly has not been any decline in these commercials this season.
One of several reasons that I can almost never sit through more than about one quarter of an NFL game is the endless barrage of pickup commercials that scream, “YOU! Yes, YOU! You are not even HALF OF A MAN! And your woman knows it! Buy this truck and at long last FEEL something!”
And there certainly has not been any decline in these commercials this season.
Gotta love the straight-faced responses to the question of whether the top guys at GM and Ford would be willing to take a substantial pay cut after both went on and on about how dire the consequences would be without some serious corporate welfare checks.
Both basically said, “Um, no, I’m good.”
Gotta love the straight-faced responses to the question of whether the top guys at GM and Ford would be willing to take a substantial pay cut after both went on and on about how dire the consequences would be without some serious corporate welfare checks.
Both basically said, “Um, no, I’m good.”