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Direct Response Marketing

Field Reports

1 Nov, 2008 By: Thomas Haire, Jacqueline Renfrow Response

Hyundai Buys Oscar Ad Space Abandoned by GM

LOS ANGELES — Hyundai Motor America has purchased the ad spots left by General Motors Corp. (GM) in next February's Academy Awards broadcast, reports It is unclear which models Hyundai will feature in its recently purchased ad spots, but analysts believe it will be the Genesis, which debuted in a TV and mobile direct response campaign during last February's Super Bowl XLII (Response, September 2008).

GM, the country's largest automaker, skipped this year's Emmy's and will pass on next year's Oscars and Super Bowl due to flailing auto sales. For the past 11 years, GM spent about $13.5 million in ads for the Oscars, or 10 percent of ABC's estimated $130 million annual awards billing. Also in the past, GM had paid Walt Disney's ABC to be the telecast's only automotive sponsor.

This news comes on the heels of the report that GM will move its regional dealer media accounts for all eight of its vehicle brands from Starcom Mediavest Group to Publicis Groupe sibling Martin Retail Group and Interpublic Group of Cos.' Velocity (an affiliate of Campbell-Ewald). The move was made in order to cut marketing costs. Martin Retail already handles Buick-Pontiac-GMC's regional dealer creative account and Velocity has most of Chevrolet's regional dealer ad group business.

Excluding SUVs and trucks, Hyundai sales are up 8.8 percent for the year, and the company has gone from owning 2.9 percent of the U.S. car market last year to 3.1 percent this year, according to Automotive News data. That increase did not coincide with ad spending — in fact, marketing budgets fell from $107 million spent from January to June 2007, to $82 million during the same months in 2008.

Google's Successful Third Quarter Gets Help From TV Ads Platform

MOUNTAIN VIEW, Calif. — Google reported a successful third quarter, with earnings up 26 percent from Q3 2007 to $1.35 billion and revenue up 31 percent to $5.54 billion. The company also recently signed a contract with COREMedia Systems Inc. that will allow Google to integrate data from the Google TV Ads advertising platform into the CoreDirect system.

"We had a good third quarter with strong traffic and revenue growth across all of our major geographies thanks to the underlying strength of our core search and ads business," says Eric Schmidt, CEO of Google. "The measurability and ROI of search-based advertising remain key assets for Google."

Aggregate paid clicks — a metric that includes click-on paid search ads and contextual ads displayed on sites using AdSense — grew 18 percent in the third quarter, which Google attributes to more people hunting on the Web for better bargains in a recession. Google recently launched a build-your-own-display-ad tool to give easier access to advertisers. Newcomers to the platform include companies like COREMedia Systems Inc. and Harris Corp.

Data from Google TV Ads campaigns can now be downloaded directly into the CoreDirect media stewardship and analytics system. Within CoreDirect, each Google TV Ads airing is matched with response and sales data from client call centers and Web servers, alongside other media buys and results. And then clients can make real-time adjustments to their campaigns to maximize ROI.

"It is no surprise that our direct response clients are on the leading edge of evaluating new ways to buy and measure media," says Glenn DeKraker, CEO of COREMedia. "The results we've achieved from this project are a product of the collaborative efforts of our clients, the Google TV Ads team and our team here at CORE."

Keeping in mind the poor state of the global economy, Google plans to drive improvements to search and ads, while also investing in future ad platforms such as mobile and display.

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