Wednesday, April 3, 2013

Latest Reshuffle Remix: Black Ad Agencies Maintain Auto Clients

This is a recent Honda ad featuring African Americans.

According to this article posted on Target Market News, black ad agencies survived the latest reshuffle of lucrative automotive accounts. Automotive accounts can make or break an ad agency, especially a minority-owned ad agency. Minority ad agencies usually provide ads and grass-roots events, targeting specific groups that usually are ignored by mainstream agencies. Moreover, they support minority-owned newspapers and minority-owned vendors also, helping to promote their brand or product. So, money is circulated in the minority community through a number of means. This also piggyback to the recently released first ever Automotive Diversity Survey.

Here's the reprint from Target Market News:

As the automotive industry drives beyond the final days of the economy's financial difficulties, attention has turned to re-vitalizing marketing strategies. So far, African-American advertising agencies have been given a vote of confidence to continue with their creative assignments as two of the industry's leaders reshuffle their accounts.


American Honda announced that following a comprehensive review of its advertising and media accounts it's selected a team structure and more collaborative creative approach. Muse Communications will continue to handle that African-American targeted creative, as well as work for the Asian consumer market. Muse will be teamed with the RPA, Mullen, Orci and MediaVest under the new framework.

General Motors has re-assigned two of its brands. Goodby, Silverstein & Partners is out as lead agency for Chevy, replaced by Interpublic's McCann Worldgroup. Cadillac, GM's luxury brand, is under review. Industry watchers expect the brand to be assigned to Campbell-Ewald, Chevy's former agency.

The Carol H. Williams Advertising agency, which is an African America owned agency, will continue its creative work on the Buick and GMC brands.

It's not clear how these strategy changes will impact media buying decisions by the automakers with black media. According to the latest Buying Power of Black America report, auto companies had $97.9 million in ad expenditures in black media in 2011. General Motors spent $19.2 in measured black media, and Honda had $4.3 million in ads.

The total spent in 2011 by black households on new cars was $11.0 billion

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