Biggest advertiser in the US questions value of TV ads
NEW YORK - Robert A Lutz, chairman of General Motors, the biggest advertiser in the US, has questioned the impact that television advertising has on influencing car buyers' choice of marque.
Lutz told the American Magazine Conference that a recent survey found that only 18% of people buying a car said that they were swayed by an ad they had seen on television.
At the same time, he was critical of magazines having what he perceived as a bias towards European cars when writing reviews, saying that while journalists had the right to write what they want, General Motors also had the right to spend its advertising dollars where it wanted.
General Motors was the biggest advertiser in the US in 2002, spending $2.5bn (£1.5bn) -- a rise of 12.5% on 2001. Consumer goods giant Procter & Gamble was the second biggest spender, with an increase of 22.2% to $2.2bn. The top 10 advertisers in the US spent $14.5bn on advertising between them.
Lutz worked in sales and marketing and at Chrysler before joining General Motors in September 2001. He wrote a book on the 12 years he spent with Chrysler entitled 'Guts: The Seven Laws of Business that Made Chrysler the World's Hottest Car Company".
He made his comments at the American Magazine Conference, being held in California this week.
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