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GM commits to doubling ad spending with Black-owned media, Marketing & Advertising News, ET BrandEquity

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GM commits to doubling ad spending with Black-owned media, Marketing & Advertising News, ET BrandEquity

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GM commits to doubling ad spending with Black-owned mediaGeneral Motors Co will double its commitment to spending with Black-owned media to 4% of its ad budget next year with a target of reaching 8% by 2025, the U.S. automaker said on Friday.

GM has come under criticism, including in full-page ads in several national newspapers, from some Black media leaders for not advertising enough in Black-owned media. GM said it will spend 2% of this year’s budget in that sector.

“This action plan will transform our engagement model with diverse media in a sustainable way,” GM Chief Marketing Officer Deborah Wahl said in a statement.

“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.”

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GM cut its advertising and promotional spending last year by about $1 billion to $2.7 billion, according to the Detroit company’s annual report.

Wahl told Reuters earlier in April its spending would return to normal levels following cuts during the COVID-19 pandemic.

GM also said on Friday it was allocating $50 million over 10 years to support diverse marketing companies.

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The company will hold a dedicated ad spending meeting on May 14 with diverse-owned media leaders ahead of its general media spending event later this month.

“I applaud GM for taking the results of their thoughtful and robust discussions with a significant number of diverse media entities,” said Alfred Liggins, chief executive of Urban One, which operates media properties targeting African Americans, in the same statement.

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