Hyundai Motor America Consolidates Media Buying.

Hyundai Motor America (HMA) announced that, after an extensive review, it is consolidating all of its advertising media buying with Kia Motors America (KMA) and that the media planning and buying portions of both company’s advertising accounts will be handled by Carat North America, effective as of May 1, 2002. Both HMA and KMA will continue to operate fully separate sales and marketing operations in order to preserve brand differentiation.

The strategy of unbundling certain advertising services, such as media planning and buying, is being employed by Hyundai and Kia to take full advantage of economies of scale available from a consolidated media buying firm.

Carat was selected because of its excellent strategic approach and insights, its ability to leverage large advertising purchases with media outlets at both the national and local levels to maximize cost efficiencies and its extensive experience with automotive firms.

“Hyundai has expressed a commitment to its dealers that we will continue to grow the Hyundai brand in the United States. This consolidation is one step we are taking in that direction. The consolidation will significantly increase our media clout in the U.S. while at the same time lowering our overall costs,” said David Weber, Vice President of Marketing at HMA. As the process of unbundling the media planning and buying will result in a significant change in Hyundai’s relationship with its advertising agency Bates Worldwide, Hyundai Motor America has also decided to conduct a review of its national creative advertising. The review of creative advertising agencies will include Bates.

The review also is being undertaken as part of HMA’s reevaluation of its future as the company continues its sales growth in the U.S. Other agencies which will be reviewed have not yet been announced.

Assisting in the review is the consulting firm Select Resources International. Any agencies expressing interest in the review will be required to contact Select Resources directly.