Kia Motors has launched a review of its media planning and buying arrangements, placing Havas Media on notice. 

The review is being handled by Hyundai Motor Group’s in-house ad agency Innocean Australia. 

The last time Kia reviewed in Australia was 2017 when Havas Media picked up the circa $19 million account from Initiative, which declined to pitch at the time. Kia stablemate Hyundai works with Omnicom’s Hearts & Science.

A Kia spokesperson told Mi3: "As part of Kia Australia’s corporate governance protocols, we are required to periodically review and tender our key supplier contracts. 

“Our media agency arrangements are an increasingly important area of business for us, having in part contributed to Kia’s considerable growth over the past five years."

Havas Media declined to comment.

Kia’s Australian agency review follows a Hyundai Motor Group global pitch last year that saw Havas Media win the bulk of planning and buying for Kia, Hyundai and Genesis in Europe, Asia-Pacific, Latin America and the Middle East. 

In the US, Hyundai Motors Group works with the indy media shop Canvas Worldwide, a joint venture between Innocean and Horizon. 

Podium finish?

The review comes as Kia fights to hold onto third place on Australia's automotive podium after its car sales powered last year, outmuscling stablemate Hyundai and Mitsubishi. The firm's marketing boss Dean Norbiato, backed by management, has pushed hard on brand levers over price-driven campaigns and, along with prudent supply chain management as Covid battered manufacturers and blew out lead times, has gained momentum as a result, outperforming more established and higher spending brands.

"It’s been five years since we advertised price – you’ve got to hold your nerve,” Damien Meredith, Kia’s Chief Operating Officer and number two Australian exec to CEO Joonsu Cho, told Mi3 in January.

However, sales growth this year has slowed, with Kia notching 2.2 per cent growth year to date per Vfacts data. Ford is closing the gap, with sales up 29 per cent year to date and leveraging a similar marketing playbook to Kia across TV and sponsorships – but going broader. At the current run rate, it could overtake Kia as soon as next month.