Hyundai snaps up Oscar ad spots

Hyundai Veracruz
Dropping its ad spot during next February's Academy Awards telecast might seem like the least of General Motors Corp.'s troubles compared to tumbling share prices, slow selling trucks and SUVs and even rumours about it selling off its towering Detroit headquarters, but it's a clear sign of the times. Even clearer as to the predicament of North American manufacturers, is the automaker that's purchased each and every available ad spot left behind by GM - Hyundai Motor America.

Advertising Age recently broke the story about GM letting next year's Oscar ad spots go, no doubt partially due to last year's show recording the lowest Nielsen ratings on record. GM announced that it would ditch its Emmy spots too (the Emmys underwhelmed with its second-worst Nielsen ratings ever), while last month the automaker added that it would drop next year's Super Bowl as well.

While viewership of the red carpet shows might be waning, the opportunity for brand association next to Hollywood's hottest names is still more glamour than some automakers can pass up, at least those weathering the current storm more comfortably.

Hyundai would be on that rarified list, and after tapping this year's Super Bowl XLII for two 30-second spots during the 3rd and 4th quarters, an event it hasn't participated in since 1989 and one that not only enjoyed the best Nielsen ratings for a Super Bowl ever with 97.5 million viewers, but with the New York Giants' unexpected victory over the New England Patriots the game became symbolic of the way that unassuming Hyundai is winning on the automotive gridiron. Its choice to snap up the available Oscar advertising real estate drove that point home, albeit targeting a slightly different consumer.

While TVs will likely be turned on to the Oscars in the same homes that they were for the Super Bowl, the former is more appealing to the less aggressive sex (celebrity columnists aside), and therefore Hyundai may give the upscale Veracruz crossover the nod. Then again, the Korean brand may attempt to persuade dozing husbands by osmosis and feature the all-new performance-oriented Genesis luxury sedan or upcoming Genesis Coupe during the breaks. Either way, the fact that Hyundai is spending the money necessary to be there, showing off its impressive new lineup of luxuriously appointed vehicles, and GM is not, despite a strong lineup of cars and crossovers of its own, is a symptom of the times we live in.

GM has been an Oscar sponsor for eleven years running, and last year alone spent about $13.5 million for 10-percent of the allotted advertising time, according to Advertising Age. The magazine noted that GM previously paid a premium to be the excusive automaker at the event, but doesn't know if Hyundai will be opting for exclusivity.

Overall GM's recent advertising pullout is bad for the advertising business, with U.S. car manufacturers the largest category in the industry. During Q2 of this year the aforementioned group has curtailed its collective advertising spend by 18-percent compared to the same period in 2007, says Advertising Age citing TNS; GM having lost a horrific $15.5 billion during this same second quarter. GM's Cadillac brand, which normally slots into the Oscar spots, has experienced a 16.4-percent year-to-date sales slump, while Hyundai, also suffering from the current downturn in US sales, has overall sales that are only off by 5.8-percent. 

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Like GM, Hyundai's SUV and crossover sales are hurting most, with car sales up by 8.8-percent. Cadillac's car sales, comparatively, are down 6.0-percent, says Advertising Age citing Automotive News. Overall the Detroit luxury brand has seen its market share shrink from 1.3-percent to 1.2-percent since last year, while Hyundai has grown it stake in the sector from 2.9-percent in 2007 to 3.1-percent so far this year. And to add insult to injury, Hyundai has increased market share despite spending less in advertising, cutting $25 million from its ad budget, from $107 million for the first eight months of 2007 to $82 million for January through August of 2008.

Another bonus for Hyundai will be an especially interesting Oscar presentation in February of next year, when the late actor Heath Ledger is expected to be nominated for Best Supporting Actor for his role in The Dark Night. In order to qualify, Warner Bros. will re-release the film (which incidentally was the second highest grossing film ever) in January. The Dark Night will be up for Best Picture too, of course.

Geri Wang, senior VP-primetime sales at ABC, told Advertising Age that a special "retrospective montage honoring the late Mr. Ledger", will likely drive up ratings even if there is no Best Supporting Actor nomination.