Hyundai calls $1bn media pitch

LONDON - The Hyundai Kia Automotive Group is reviewing its estimated $1 billion global media planning and buying business.

Kia... reviewing its billion dollar global media business
Kia... reviewing its billion dollar global media business

Hyundai Kia, which spends £30 million on media in the UK, has informed agencies of plans to have new agency arrangements in place for 2010.

These are likely to involve a consolidation of media for the Hyundai and Kia brands into one network.

Innocean, the in-house marketing services department at Hyundai Kia, is overseeing the review.

The Interpublic network Initiative handles the $750 million consolidated US Hyundai Kia business.

OMD, via a special unit called K360 Media, handles the £60 million pan-European Kia media account, including the £17 million UK business.

European media for Hyundai is allocated on a local basis, with Equinox, the Zenith-Optimedia group agency, handling the £13 million UK account.

Sources suggest that Hyundai Kia is keen for holding companies to develop solutions to avoid conflict, such as the one adopted by Omnicom’s OMD in forming K360 when it won the Kia business in 2005.

Interpublic, whose Initiative network has handled the consolidated US Hyundai Kia media account since January 2008, and Publicis, which has the Hyundai account in various markets through its ZenithOptimedia network, are thought to be likely participants in a pitch alongside Omnicom’s K360 offering.

The Korean-based Hyundai Kia follows other motor groups such as Renault-Nissan, which last year consolidated its media into OMD, in exploring the benefits of media consolidation.

A Kia spokesman said: "Innocean is putting together the review process and we may end up putting the business into one or more companies, but we are looking at everything globally."