Hyundai Motor America Inc.’s new status as the automotive sponsor of the National Football League—a deal that came at an estimated cost of $50 million a year—could be the ticket to getting the Fountain Valley-based automaker back on pace with the market.
Hyundai sold 371,150 vehicles this year through June, a 2% increase over a year ago.
National auto sales grew 4.4% during the same time period.
The automaker’s 2014 sales added up to 725,718, a year-to-year increase of less than 1% compared with a 5.9% gain for the U.S. market overall.
“Hyundai’s position in the U.S. hasn’t kept pace with the market’s recovery over the past few years, making a deal like this more appealing,” said Karl Brauer, senior analyst at Kelley Blue Book in Irvine. “The NFL sponsorship will certainly boost the brand’s visibility while potentially leading to higher sales and greater market share. Of course, spending this much on a sponsorship deal always raises the cost-benefit question, and we won’t have an answer for at least a few years.”
Hyundai replaced General Motors Co. in the sponsorship, which GM began in 2001 at $25 million per year.
“We are huge football fans at Hyundai and feel there is no better venue to reach consumers, increase consideration and tell the Hyundai brand story,” said Hyundai Chief Executive Dave Zuchowski in a statement.
It wasn’t immediately clear if the $50 million Hyundai may spend annually on the NFL deal will come out of its advertising budget, which was estimated at more than $300 million last year.
The four-year NFL deal lets Hyundai use NFL trademarks on various advertising and promotional materials. The automaker also will provide promotional vehicles at the Super Bowl and other events, including the league’s playoffs, prospect combine and annual draft.
That’s a lot of eyeballs on the Hyundai brand, even for the Super Bowl alone. This year’s game, which took place in February, had an average audience of 114.4 million viewers, according to NBC, picking up the record as the most watched broadcast ever in the U.S.
“The partnership with the NFL ensures [Hyundai will] be seen constantly by millions of people, as the popularity of America’s biggest sport keeps growing,” said Akshay Anand, an analyst at Kelley Blue Book.
“We’ve seen Hyundai tout success with other sports partnerships, such as the World Cup, and this looks to add on to that success. It’s worth noting that Hyundai’s sister company, Kia, is a partner with the NBA, and has seen success with marketing, such as having stars dunk over a Kia Optima (on the court during breaks in games). For now, expect to see the new Tucson and upcoming Elantra on your TV sets on fall and winter Sundays.”
The NFL still gets to sell sponsorships in the truck category of the automotive market, as well as retains the right to provide a vehicle to the Super Bowl MVP, according to ESPN. Hyundai introduced a Santa Cruz “crossover truck” concept at the Detroit Auto Show in January but has yet to bring an offering in the category to the U.S. market.
The new sponsorship will kick off Sept. 10.
It closely follows marketing changes in Hyundai’s executive lineup.
Director of Marketing Communications David Matathia last week announced plans to leave for a job with advertising agency Fitzgerald and Co. in Atlanta.
“David has been a very important member of our team and will be missed,” said Jim Trainor, a Hyundai spokesman. “We wish him all the best.”
The automaker has yet to hire a vice president of marketing, a position vacant since Steve Shannon left in November.
