After Controversy, GM Plans to Spend More on Ads With Black Media

After robust messaging from Black-owned media that General Motors (GM) is not giving them their fair shake, GM recently unveiled a new strategy to spend more money in advertising with diverse media companies, the Detroit Free Press reported.

Last Friday, GM revealed a five-part plan (after a number of meetings between CEO Mary Barra and Black-owned media representatives over the past three weeks), which will result in greater accessibility to GM’s advertising dollars, according to the article. 

The plan comes on the heels after GM delayed a meeting scheduled weeks ago with GM CEO Mary Barra and number of key Black-owned media representatives, the Detroit Free Press reported. This proposed meeting came on the heels of a full-page ad from the media entities on how Barra is not being as inclusive as she could be with Black representation — and that she has refused to meet with the media groups.

Byron Allen, founder, chairman & CEO of Allen Media Group, LLC  and six other executives from Black-owned media companies (including Ebony Media and Black Enterprise) signed a full-page ad that was in a past Sunday Detroit Free Press newspaper criticizing Barra, according to the article.

The main parts of the plan GM said it will provide:

  • Better measurement tools like Nielsen ratings
  • More favorable payment plans from GM and advertising deals.
  • Increase its ad spend with Black-owned media from 2% to 8% by 2025.
  • Spend $50 million over 10 years to further support diversity in marketing and sponsorships beyond advertising.
  • GM will also hold a May 14 summit with leaders of companies with diverse ownership to sell their proposals to GM before the mainstream media pitch session that happens later in the month.

“This action plan will transform our engagement model with diverse media in a sustainable way,” said Deborah Wahl, GM global chief marketing officer in the article. “Over the course of several weeks, we met with many diverse-owned media organizations. We are grateful for the transparency and spirit of collaboration, which helped us frame this inclusive approach.”

Read the full story here.

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