The automaker's decision to scrap the invitation-only GM Style party -- a blend of fashion, fenders and music that kicked off the Detroit show the past two years -- comes as the company copes with a $15.5 billion second-quarter loss that leaves little room for a catered event with an open bar and shows, which have featured singers Kid Rock and Mary J. Blige, and other celebrities. Citing budget cuts, the automaker said it has shifted time and money to GM's centennial celebration next month, and is focusing its advertising around key launches and brands, and in ways that reach more consumers, spokeswoman Kelly Cusinato said. GM spent about $16.4 million in advertising at this year's Academy Awards show and last year's Emmy broadcast, according to TNS Media Intelligence. 'The Emmys and Oscars are prestigious events, and the decision to release them was a difficult one -- especially after over a decade of involvement,' Cusinato said. 'Timing is always an important consideration for events such as these that concentrate many commercials into one evening.' The GM Style event, meanwhile, helped boost the city and GM's profile by luring stars and celebrities to Detroit, said Joe Serra, senior co-chairman of the 2009 auto show. 'Obviously we'd love to have it,' he said. 'But you've got to respect the business decisions they are making. It's one of those tough ones.' The automaker's decision strips the Academy Awards of one of its top sponsors. From 1998-2007, GM bought more advertising time during the Academy Awards than any other company, spending $97.1 million, according to TNS Media Intelligence. GM already had cut its Academy Award commercial time during the Oscars broadcast in February. After being the top advertiser in 2006 and 2007, GM fell to third place this year, airing three minutes' worth of commercials, 30 seconds less than L'Oreal and Coca-Cola, according to Nielsen Monitor-Plus. The three highest-rated GM commercials were for either the GMC Acadia or Cadillac Escalade. A GM spokeswoman would not say how much the automaker spent during this year's Oscars broadcast, but TNS Media Intelligence research shows GM spent $13.5 million. Last year, GM spent $2.9 million on the Emmy Awards broadcast. Academy Award presenters, performers and other celebrities also were provided Chevrolet Tahoe and Suburban SUVs that were either hybrids or capable of running on E85 ethanol. A spokeswoman for ABC, which hosts the Oscars, declined comment. GM's move to cut Emmy and Oscar ads was first reported by The Wall Street Journal. GM's decision comes amid a sharp reduction in advertising spending among some Big Three members, and a shift toward social networking Web sites, live events and product placement. Overall advertising budgets for domestic automakers fell 16 percent in the first-quarter, according to TNS Media Intelligence. During that time frame, GM spent $532 million, up 12.6 percent, while Ford Motor Co. cut its ad spending by 31 percent. The decision fits into a plan outlined last month by GM Chairman and CEO Rick Wagoner to boost GM's cash by $15 billion this year and next. Along with canceling its $1-a-share dividend, GM plans to raise $5 billion through asset sales and borrowing. The advertising cuts are not surprising given GM's restructuring efforts, said Wes Brown of the Los Angeles marketing research firm Iceology. Especially considering the Oscars audience fell this year to 32 million from 43 million seven years ago. 'If you're GM, and you're saying viewership keeps going down, younger people are not watching, all you're dealing with is people over 50, maybe it's not the best way to spend your money,' Brown said. GM will continue to sponsor the Grammys, Golden Globes and Country Music Awards in 2009, Cusinato said. You can reach Robert Snell at (313) 222-2028 or [email protected].