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AdAge has reported General Motors, Broadcasters in Upfront Standoff:
But when I realize that the third largest advertiser spends $1.1 billion across all broadcast and cable networks, I start to get a feel for the money context in the TV business. If all cable and satellite households pay $1 per month to one network, that's about $1.1 billion.
This is bad news for the future of programming.The proposal from the automaker, which has recently stopped advertising on Facebook and in the next Super Bowl, appears to be onerous for the TV networks. One ad-buying executive said the automaker could be seeking cuts as large as 20% in the cost of reaching 1,000 people, a metric known as a CPM that is common in upfront discussions. The TV networks try to sell the bulk of their ad inventory for the coming fall season each year in this annual bargaining session.
GM's request "has not been well received" by the TV outlets, said one ad buyer. Spokesmen for General Motors did not immediately respond to queries.
...GM's ask has the potential to cause ripples. General Motors is one of the biggest spenders on TV advertising, spending about $1.1 billion on TV ads in 2011, making it the third-largest U.S. TV advertiser last year after Procter & Gamble and AT&T.
But when I realize that the third largest advertiser spends $1.1 billion across all broadcast and cable networks, I start to get a feel for the money context in the TV business. If all cable and satellite households pay $1 per month to one network, that's about $1.1 billion.