Essay 4764

HOLD THE PRESSES! HIT THE BRAKES!
WHATCHU TALKIN’ ‘BOUT, WILLIS?!

Not sure what the hell is going on with General Motors, but it’s a PR pileup right now.

Here’s a rearview synopsis from MultiCultClassics’ perspective:

About a week ago, AdAge.com presented a piece titled, “Five GM Brands to Shift Multicultural Work to General-Market Shops.” The story (see Essay 4728 for the verbatim record) essentially stated that GM moved most of the assignments traditionally slotted for minority agencies to White agencies; plus, the Carol H. Williams agency was losing major GM business and defending its Chevrolet work in a review. We’re uncertain if AdAge.com scooped the item or it hatched elsewhere.

Numerous media sources and blogs—including this one—picked up the story and offered reactions. The pro-multicultural crowd blasted the decisions. And as expected, word hit the online grapevine, with folks organizing boycotts and protests.

Why, MultiCultClassics even created a series of parody ads criticizing GM, posting five of them on Monday and Tuesday (two can be viewed at Essay 4750 and Essay 4752). Advertising blog Agency Spy referenced the MultiCultClassics campaign too. Bloggers at The Big Tent, AdAge.com’s blog dedicated to diversity issues, prepared to launch additional opinions. Target Market News, a Chicago-based web site focused on multicultural marketing, chipped in its two cents. Black Enterprise also investigated the scene, quoting GM executives, irate industry honchos and Carol H. Williams (definitely check Essay 4761).

Sometime during the spirited activity, Ad Age revised the original story (see Essay 4759). Suddenly, the whole affair appeared to be a consolidation tale, with assignments going from minority shops to Publicis Groupe’s minority shops (the exceptions being accounts that never had minority input to begin with). However, the CHW details remained the same.

Meanwhile, multicultural marketing experts allegedly broadcast their concerns on Rev. Al Sharpton’s radio show. And God only knows what other consumer strikes have been plotted and executed.

But wait, there’s more. GM North America Vice President Mark LaNeve delivered an official clarification, actually posting it on this blog (see comments for Essay 4750).

To reduce the chaos, MultiCultClassics typed updates and removed three parody ads (we kept two to illustrate the communications mess).

Those are the game highlights so far, sports fans.

For spectators like our friends at Agency Spy who are perplexed by the loud commotion, MultiCultClassics will contribute a few biased thoughts.

There are still plenty of unanswered questions. Stories identified a GM spokeswoman who called the maneuvers “a new approach to multicultural marketing.” However, no one has elaborated on this innovative vision. With all due respect, GM is not exactly a trendsetter—despite the fact that the automaker does indeed fund a ton of multicultural and general marketing. When will the multicultural marketers learn about the amazingly fresh multicultural marketing concept?

GM executives insist it’s not a cost-cutting deal. But agency sources claim GM wanted a single bill from Publicis, and the agencies expect cost efficiencies to be realized by the client. Guess cost cutting and cost efficiencies are different terms. Heaven forbid these acts might be related to the automaker’s multi-billion-dollar profit losses.

Mark LaNeve argued GM’s multicultural spending has increased in recent years, and he predicts the trend to continue. That’s got to be a swell announcement for the general market agencies about to handle multicultural duties. Heck, minority shops usually receive peanuts compared to their majority counterparts. Although the growing billing is likely tied to the exploding Latino segment. It should be noted too that increased spending does not translate to sufficient spending in the multicultural marketing world.

Awarding multicultural assignments to general market shops is, well, bullshit. And honestly, it’s not just a racial thing. As Robert J. Dale said in the Black Enterprise story, minority agencies would love to win general market business, yet they are consistently blocked from competing. A GM executive served up a standard “we-need-global-capabilities” excuse. Quiet as it’s kept, the advertising industry has not simply segregated the workers, we’ve also segregated the work. Sort of. Because when minority shops want general market prizes, the door is shut. On the flipside, when general market agencies long for the slivers of the budgetary pie reserved for minorities, it’s no problem. Don’t worry, you won’t even have to pitch for it. Adding insult is GM’s declaration that Modernista, the shop stealing the minority budgets for Cadillac and Hummer, “feel[s] that their overall campaign will be developed with a multicultural point of view.” As if the expertise of multicultural marketers can be so effortlessly absorbed. Let’s also remember that the GM spokeswoman proclaimed, “We will not have one-size-fits-all.” But they will have one agency with all the pie.

Black Enterprise reported the GM spokeswoman “emphasizes that the reorganization has nothing to do with agency performance.” This is perhaps the scariest notion in the event. It may mean that minority shops have less power than they realized. Your professional fate is not linked to your achievements, but rather, your connections to holding companies. Unlike general market shops who are constantly vying for new business against opponents within the same network (e.g., how many IPG agencies were involved in the last Wal-Mart contest?), minority shops are chained to their corporate bosses. The independent shops probably have the bleakest futures.

It’s such a shame, as GM has historically been a major supporter of multicultural marketing. The automaker must carefully study the consumer response to the misinformation. The public doesn’t play around in these dramas. GM is absolutely under the microscope at this juncture. Proceed with extreme caution. No GPS capabilities or OnStar system can navigate them through the quagmire ahead.

Better think about hiring a minority PR firm.