The Big Three auto cheeses are back on Capitol Hill to take another crack at a bailout. The chief executives of Ford, General Motors and Chrysler failed at their first attempt, each having arrived in Washington, D.C. aboard a private jet. They were told to go figure out how they would use a $25 billion handout to keep the car companies afloat long term.
The auto industry is the No. 1 source of revenue for TV networks and stations. Car ads were pervasive, from sleek manufacturer mini movies to screeching local car dealers wearing tights and capes. But when auto sales fell into the black hole of mortgage foreclosures, the ad category started shrinking.
Automotive fell by 17 percent in spot ads for the second quarter, according to the Television Advertising Bureau. The category dipped to $669 million this year from $806 million last year.
Spot ad spending by General Motors corporate dealers dropped more than 68 percent in 2Q, from $96 million last year compared to less than $31 million this year. Local GM dealers cut back by nearly 25 percent, from $34 million to $26 million.