• Ad Age, Monday, February 12, 2007 12 PM

TNS Media Intelligence data shows a falloff in General Motors ad spending for the first 11 months of the year, from $2.65 billion in '05 to $2.03 billion in '06--a stunning drop of 24%. GM, however, says the cut was closer to 10%, or a reduction of nearly $300 million. But TNS stands by its methodology, which it says was the same in '06 as it was in '05.

Bottom line: the country's second-largest advertiser is demonstrating a shift toward channels such as direct marketing, Web sites, online video, event marketing, branded entertainment and Internet advertising, which are harder to track than the other major media channels. That could have major repercussions, not only for "old" media companies, but also for ad agencies whose direct and digital siblings increasingly outstrip them in revenue.

Betsy Lazar, executive director-advertising and media operations at GM, says through a spokeswoman that the automaker is continuing to shift more dollars online, and that she believes TNS underreports digital spending.

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