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Take a good look at the spot below, because Cadillac won’t have the luxury of such well crafted spots in the near future.

Ad Age is reporting that the “new GM” will drop Modernista from the Cadillac account.

Since GM’s exit from Chapter 11 bankruptcy this summer, the Detroit grapevine has swirled that Modernista was the odd agency out since it was independent, and that it would be replaced with a shop from one of GM’s two main agency-holding conglomerates: Publicis Groupe or Interpublic Group of Cos. Pundits figured the leaner GM could no longer afford the luxury of a smaller, independent shop.
The move is financially related — GM wants to cut fees, said a former GM exec, since Modernista had higher fees than other, longer-term agencies to the marketer.

Yes, higher fees for much much better work.
[via Ken Wheaton]

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.

Comments

  1. David,
    This actually brings up a good question that will no doubt frighten or upset advertising people:
    What is the value of “much much better work” if it isn’t selling any more product than the standard awful work?
    As we all know, no amount of advertising will help if the product is not great. If GM really knew what it was doing, it would fire all its agencies and funnel the money back into R&D.