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Chrysler Shifts Ads to Sports, Web as Writers Strike (Update1)

By Mike Ramsey

Jan. 14 (Bloomberg) -- Chrysler LLC, the third-largest U.S. automaker, is shifting its television advertising dollars to live sports and the Internet and out of primetime programs as the Hollywood writers' strike heads into an 11th week.

The temporary move may become permanent, because primetime commercials don't have as much viewer impact they did a decade ago, marketing chief Deborah Wahl Meyer said yesterday in an interview at the Detroit auto show. Meanwhile, Chrysler is reaching buyers on car-enthusiast Web sites, she said.

The strike ``is changing the whole broadcast model,'' Meyer said. Unlike the last writers' walkout, in 1988, ``the biggest thing we've noticed about the strike is that nobody is talking about it,'' she added.

Advertising on sports telecasts and on the Internet allows Chrysler to keep reaching consumers while the strike forces cancellation of many of the programs where the automaker placed ads. Meyer wouldn't say how much Auburn Hills, Michigan-based Chrysler spends on TV ads.

``I don't think this will mean a crisis for network TV yet,'' said Research Vice President Brad Agate at New York-based consulting firm Horizon Media. ``It could have an impact on pricing'' if demand falls for 30-second ads on primetime shows, he added.

The writers' strike forced Wahl to seek a new advertising strategy after joining Chrysler in August from Toyota Motor Corp., where she was in charge of marketing for the Lexus brand.

Union writers walked out on Nov. 5 after failing to agree with the Association of Motion Picture and Television Producers on how they would be paid for use of their work on the Internet and mobile devices.

To contact the reporter on this story: Mike Ramsey in Detroit at mramsey6bloomberg.net

Last Updated: January 14, 2008 12:13 EST

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