The consolidated £280m account brings together Hyundai's media with that of its subsidiary, Kia Motors America. While Zenith had previously held the much larger Hyundai account, the smaller Kia media business had been held by Omnicom Group's OMD. It is understood that US media independent Horizon Media, New York, and Mediaedge:CIA, New York, also competed for the account.
The loss of the media business came as part of a double blow for Cordiant as Hyundai announced it would also be reviewing its creative account, held by Bates USA West, Irvine, California, as well. The Kia creative is not part of the review.
The win boosted Aegis's share price this morning -- its stock was up 3.93% to 102p in early trading.
Bates has been invited to take part in the creative review, in which Hyundai is being assisted by the consulting firm Select Resources International. It is not clear if the agency will take part in the review.
There has been speculation for weeks now that Cordiant would lose its prized Hyundai US media account. Towards the end of last year, talk that the account was on the move sent Cordiant shares tumbling down, at one point at the end of November by as much as 8.1%. The Hyundai account was described by chairman Michael Bungey as one of the global rocks upon which the business is built.
David Weber, vice-president of marketing at Hyundai, said: "Hyundai has expressed a commitment to its dealers that we will continue to grow the Hyundai brand in the United States. This consolidation is one step we are taking in that direction. The consolidation will significantly increase our media clout in the US while, at the same time, lowering our overall costs."
Hyundai UK is not affected by the review. It uses Leagas Delaney for creative and PhD for media buying. Hyundai Motor in Korea retains Diamond for creative advertising, while Hyundai Motor in Europe uses Atlas Advertising in London.
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