Welcome Back GM
By Kickntrue on 11/29/10
After 2 years out of the golf sponsorship business- GM will be back in 2011.
adillac and the PGA Tour announced a six-year sponsorship deal Monday, the latest step by General Motors in its emergence from bankruptcy protection. The sides will meet again in the coming weeks to talk about extending the arrangement.I'm pretty clueless on the amount of money it takes to sponsor a sporting event but I know I've heard companies talk about what a good opportunity it is. When you compare it to the cost of tv ads it seems like a decent "value." Spending 30 seconds during the Super Bowl costs north of $2M. Everyday commercials are much much less- but a medium sized company can still easily drop $5M-$10M on tv ads. So, for a mega-company to spend that same amount on an event that will get a couple weeks including 4 intensive days of coverage with their name mentioned in every newscast, online report, ticket stub, etc, seems like it could be alright.
That said- I'm sure there are plenty of GM employees (present and former) who'd argue the money could be better spent... you know, on their jobs.
I'm impartial. I realize it takes marketing and sales to grow a business- for any of the jobs matter anyway, but it's awfully easy for an out of work auto employee to see a sponsorship of a golf event as $1.5M more in Tiger's pocket.
[ comments ]
The only reason that ads work and are worth their value is because of the people who watch the sporting events. When folks bitch about how much a player makes (golf, footbal, basketball), they only have themselves, as a whole, to blame. Its all about "Supply & Demand". If there were no demand, the supply would stop producing, hence no more ads. As long as folks buy products that they see on TV, the companies are going to pay for the ads and sponsorships. Its the way it works, if it didn't work, they wouldn't do it...
Yes, it certainly worked well for Buick...well...maybe not. I married into a "Ford" family 26 years ago so I am biased. However, I find it hard to swallow that Governme...General Motors was able to walk away from many, many committments via bankruptcy court. Now, after screwing countless other people and organizations, the "new" GM is ready to start throwing dollars around on the professional golf scene. Maybe marketing via the PGA Tour is the way back for GM,along with sending their executives down to Doral via corporate jet. From my perspective, better to spend the money and get the "Volt" and other designs from the drawing board on to the showroom floor. Producing a better product and having it available to sell beats all the fluff advertising they can buy from the PGA.
Kurt the Knife says:
i bought Ford @ around $2.00. passed on GM IPO. we'll see what happens. tho' i appreciate the support of the PGA i would like if GM might pass on all the marketing expense and pay me back for my compulsory investment.
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