Some things just go together: milk and cookies, Trump and Twitter, Kia and the NBA.
The Irvine-based automaker, nearly a decade into its successful marketing relationship with the basketball league, signed on for three more years. It continues as the “official automotive partner” of the National Basketball Association, the WNBA and the NBA G league and as title sponsor of the NBA Tip-Off, All-Star MVP and the NBA Performance Awards.
The company says the partnership has been “pivotal” in increasing brand awareness.
During the 2016-17 season, 64% of “avid NBA fans” said they’re likely to consider a Kia for their next vehicle. That’s up 100% over 2009, a year into the sponsorship launch. The affinity also translated last year into “a 177% increase in customer leads,” said Kia Motors America Inc. Marketing Communications Director Kimberley Gardiner. “We know that these activations are working.”
The automaker’s annual marketing budget is estimated to be $650 million, about $40 million of that’s dedicated to sponsorships, the largest chunk of which goes to the NBA, according to ESP Properties in Chicago. Meanwhile, iSpot.tv Inc. estimated Kia’s TV ad spending in the regular 2016-17 season at $22.4 million and at $7 million for commercials that aired during the finals.
The collaboration launched in 2008 and has been renewed several times over the years. In 2014 Kia added the “official luxury vehicle” designation following its debut of the K900 sedan.
In the latest rendition of the marketing deal, it will have “an increased on-site presence” during the NBA draft. It’s also working with the NBA to “implement unique fan experiences” featuring the 2018 Kia Stinger, its new five-passenger sports sedan, “which will be the focus model for the NBA this year,” Gardiner said.
Over the past year, Kia reduced the number of NBA teams it sponsors from 14 to 11: the Atlanta Hawks, Charlotte Hornets, Chicago Bulls, Cleveland Cavaliers, Golden State Warriors, L.A. Clippers, Miami Heat, New York Knicks, Orlando Magic, Philadelphia 76ers and Phoenix Suns. The partnerships include “vehicle displays in local market arenas/venues and local market retailer promotions which continuously drive new foot traffic to dealers,” she said.
The NBA teams are also selling advertising space on players’ jerseys, sponsors placing their logos—no bigger than 2 ½ inches by 2 ½ inches—on the upper left side. The price tag? About $5 million to $10 million, depending on the team. Kia has so far opted out, perhaps looking for a bigger audience.
Its logo did appear on player jerseys during the All-Star games in Toronto last year and Charlotte, N.C. this year. The deal—part of the company’s media buy with Turner Sports, which broadcasts all NBA games and manages NBA.com together with the league—will continue for the next All-Star Game in February.
The automaker has “also tapped into the NBA’s strong presence on social and digital to reach a very engaged audience,” Gardiner said, referring to the season-long #KiaWho YaGot sweepstakes, which gives fans the chance to predict the winner of key matchups during the NBA Tip-Off via the league’s Twitter and Instagram accounts.
Kia’s year-to-date sales through September added up to 457,930 vehicles, a 6.9% decrease, in the middle of the OC-based automakers’ pack.
