• Ad Age, Monday, January 22, 2007 11:45 AM

While the stampede to digital media is often blamed for many of Time Inc.'s magazine woes, the company's other big problem: a changing marketing approach by the domestic auto industry.

As magazines try to adapt to the Web, Detroit's carmakers -- long big print spenders -- are cutting their costs, while looking for more direct and interactive connections with potential customers. Domestic automakers slashed spending with Time Inc. by a total of more than $100 million last year with General Motors, formerly Time Inc.'s biggest advertiser, cut its spending by 29%, or $47.8 million, according to TNS Media.

DaimlerChrysler, while not quite as big, cut its spending with Time Inc. from $93.5 million in 2005 to just $39.7 million last year and Ford Motor Co. trimmed its Time Inc. outlay from $106.7 million to $101 million.

Read the whole story at Ad Age »