How General Motors Quietly Reshaped the Entire Advertising Industry in 1992

In 1992 I was commissioned by General Motors to develop a consulting report that was positioned publicly as an assessment of the media buying landscape But privately its purpose and what it ultimately delivered was something much more transformational The report developed for GMamp8217s Corporate Media Department led by Michael Browner and Betsy Lazar under the direction of CMO Phil Guarascio became a catalyst for a radical shift in agencyclient relationships ultimately leading to the creation of GM Mediaworks under Interpublic Group and the broader industrywide separation of media and creative into distinct profit centersWhat I observed then and predicted with clarity has since shaped the trajectory of media buying including the rise of inhouse corporate media departments the unbundling of media services and the commoditization of media Now more than 30 years later I believe the advertising industry is again at an inflection point one that calls for equally bold decisions to restore balance between media and creativity to inject technointelligence into planning and to leverage generative AI to rebuild the value of media brand equity1992 A Blueprint for DisruptionAt the time General Motors39 media buying structure was highly fragmented Network television buying was divided across multiple Agencies of Record AORs by daypart with inconsistent communication between planning and buying Through my research and confidential interviews with more than 60 senior media executives and agency leaders I learned that 80 of marketers expressed concern with their agenciesamp8217 capabilities in media and only 8 were fully satisfied with their ability to evaluate media buying performanceThe situation was clear agencies were becoming increasingly focused on turning media into a profit center The divergence between agency financial priorities and client performance goals had grown unsustainableI wrote then and I stand by it now amp8220Control over its own destiny is the critical element for maintaining General Motorsamp8217 successful management of the media processamp8230 GM can proactively direct and control the nature of changeamp8230 or it can wait and lose controlamp8221I recommended then that General Motors fully consolidate its media buying either inhouse or under a holding company specifically suggesting a dedicated unit under Interpublic The result was GM Mediaworks followed by the later consolidation of media planning and buying into GM Planworks under Publicis Groupeamp8217s StarcomWhat Followed Power Shift and CommoditizationThe decision set off a domino effect that transformed the agency model Media buying was unbundled media agencies emerged as independent entities and clientside media departments gained prominence While this led to more efficiency it also commoditized media reducing its strategic and creative valueMedia became transactional Value was equated with scale CPMs and buying efficiency Planning and storytelling were decoupled and the role of media as a strategic business asset began to erodeAs a client I spoke with warned then amp8220Agencies donamp8217t have a clear vision anymore of why theyamp8217re in the media businessamp8230 there are just too many media dollars being spent for me to leave it in the hands of the agency without tight controlsamp8221The Radical Realignment of Advertising and Why It Still Matters TodayFast forward to 2025 and we are again in crisis but for different reasons Media is now abundant and supply far outpaces demand Inventory is cheap Data is ubiquitous Algorithms decide more than people do But media value real strategic brandbuilding value is at its lowest ebb in decadesWe are overoptimized and underinspiredThe pendulum has swung too far in the direction of commoditization Media agencies now hold the most power in the advertising ecosystem often more than their clients or the media companies themselves But without a renewed focus on creativity strategy and brand equity that power is precariousWe need a new transformation one that restores creative intelligence to media and reimagines how media drives business outcomesA New Framework From Commoditization to ConvergenceI believe itamp8217s time to challenge the current model and introduce a new vision One grounded in equilibrium ingenuity and futurefacing intelligence The next transformation should center on five strategic imperatives1 Creative Integration in Media AgenciesMedia agencies must build internal creative teams not to compete with traditional creatives but to translate data and insights into compelling humancentered media experiences Creativity is not the enemy of efficiency it is its multiplier2 Technointelligence for Media EquilibriumI advocate for the evolution from raw data to technointelligence a strategic fusion of technology analytics and human judgment that restores balance in the media ecosystem Media equilibrium means optimizing not only for cost but for culture attention and outcomes3 Generative AI as a Value BuilderRather than using generative AI only to reduce costs or automate content we must use it to rebuild mediaamp8217s value as a financial asset a brandbuilding vehicle and a lever of enterprise growth Media brand equity must be tracked managed and reinvested in4 Strategic Rebalancing of Supply and DemandThe advertising economy must shift from the oversupply mentality to demand cultivation That means designing media strategies not around volume but around value to the consumer the brand and the business5 Reinventing the AgencyClientMedia TriangleItamp8217s time to reshape the triangle of influence that governs our industry Agencies clients and media must collaborate in new ways aligned not by contracts but by shared performance metrics and longterm brand healthLessons Still Relevant TodayBack in 1992 I argued that amp8220communications continuity and controlamp8221 were the bedrock of effective media management That remains true But today those principles must evolveCommunications must be accelerated through AIenhanced transparency and realtime collaborationContinuity must extend to learning models where institutional intelligence compounds over timeControl must shift from guarding information to designing intelligent systems of governanceThe strategic insight that powered GM Mediaworks is still relevant consolidation isnamp8217t about efficiency alone Itamp8217s about clarity of vision The moment demands that media again serve as a strategic lever of competitive advantageLeading the Next EraAs I continue my work advising corporations and media organizations speaking to leaders about The Tao of Leadership and the future of media I remain convinced that we are poised for another renaissance If we can rebalance creativity with technology and reclaim media as a source of brand and cultural value the next chapter can be even more powerful than the lastWeamp8217ve transformed media once Now itamp8217s time to do it again with foresight with purpose and with the courage to leadTo connect with me for insights briefings or speaking engagements visit wwwjackmyerscom or message me directly on LinkedIn

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How General Motors Quietly Reshaped the Entire Advertising Industry in 1992

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