SGM, Nissan reshape media roster in China

Shanghai General Motors (SGM) has reinforced its relationship with Zenith Media China, handing the planning and buying work for Chevrolet and Cadillac to the media agency, which already handles Buick for SGM. Zenith won the business in separate competitive pitches, against Starcom for Cadillac and Universal McCann for Chevrolet. Both makes are new to the China market without an incumbent. Meanwhile Nissan has awarded OMD television and print media responsibilities for some of its models in China, though the work will be coordinated by Nissan's national partner, Hakuhodo, from the Japanese agency's office in Hong Kong. OMD's remit was not thought to have been decided at the time of going to press. Earlier in the year, Nissan selected Hakuhodo to oversee media for six imported car models in a pitch involving OMD and local agency Tong Da Li (Media, May 21). Hakuhodo's appointment for the brands, including Cima and Cefiro, marked the first time that Nissan had used a media agency for its import business. Auto industry adpsend has been rocketing in China, zooming forward by a record 133 per cent last year, according to figures from Nielsen Media Research AdQuest, a surge fuelled by high-octane sales figures. Sales decelerated from an all-time high last year, and adspend has accordingly slowed to a 75 per cent year-on-year increase for the first five months of the year, still the second fastest rate of growth in recent years. SGM's media investment is expected to at least double as it debuts two more models in China, with ad campaigns for both Cadillac and Chevrolet expected later this year. Creative assignments were decided in pitches earlier this year, with Leo Burnett bagging Cadillac and McCann- Erickson taking Chevrolet. Buick, which has been available in China for five years, is handled by Bates. Zenith has looked after media for Buick, SGM's mid-range vehicle, since its launch. SGM is hoping to tap into both the top-end of the market with the launch of Cadillac and entry level buyers with Chevrolet. US auto firm General Motors has earmarked a further US$3 billion for R&D and production in China, on top of $2 billion it has spent since entering China five years ago. The investment has helped General Motors cars become the second most popular in China, behind Volkswagen. SGM is a joint-venture between General Motors and Shanghai Automotive Industry Corporation. China is already one of the largest car markets in the world, with some analysts predicting it will be the world's biggest in less than 20 years' time. Although the demand is domestic, China's auto makers are hoping it will soon become a major exporter of vehicles.