Byravee Iyer
Jul 15, 2013

GM chooses video over TV in Korea, sees improved brand metrics

SEOUL - General Motors, one of the largest advertisers globally, is tweaking its media mix in Korea, shifting television ad spend to video advertising in an effort to increase its market share in the country.

GM chooses video over TV in Korea, sees improved brand metrics

The reason is simple enough: In Korea GM is up against serious competition from brands like Hyundai and Kia, which together have a market share of about 77 per cent. While business has been growing, GM needed a plan that would innovate and deliver significantly better return on investment.

Meanwhile, digital video consumption has skyrocketed in Asia, with video now being consumed across multiple devices and in a variety of contexts. In South Korea, consumer penetration of TV and digital video is believed to be equal.

GM’s primary objective was to build more reach-based awareness and consumer engagement. Thus, in early 2013, GM and agency Aegis Media outlined a new plan for the carmaker using CCS Planner, a recently launched planning tool that aimed to optimise multimedia campaigns to meet specific marketing objectives, including costs and reach. Both agency and client agreed to redeploy just 6 per cent of TV spending into digital video.

Executives at Aegis believed that if 5 per cent of GM’s TV budget were diverted to video, reach would increase 21 per cent and engagement scores would go up a percentage point.

“CCS gives local GM operations access to data they’ve never had before, particularly in areas like consumer buying and media consumption and really rounds out a picture of consumer targets and optimizes our local plans across all media,” said Sharon Nishi, brand marketing director, General Motors International Operations.

According to Ros Hamilton, Aegis’ director of consumer insights, APAC, CCS indicated that at higher and higher investment levels in digital video, reach increases with no predictable maximum. “It is theoretically possible in Korea to match the reach in TV with digital video as consumer penetration is equal in both media,” she noted.

Results from the new plan have already begun to trickle in. GM’s TV GRPs stood at 267 versus the old plan’s GRP of 300. Video GRPs touched 253, where the old plan would have delivered nil. Overall, GM’s GRPs increased to 520 from 300. What’s more, the Chevrolet brand has seen double-digit growth in brand awareness and consideration since the campaign launched, according to the companies.

Globally, GM's overall advertising spend is roughly $1.83 billion, with digital accounting for approximately 15 per cent of that. 

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