Why Kia Bet on Ads Exceeding 250 Million Won per Second

EV6 Ad at the 56th Super Bowl
Return After 2 Years Since 2020
$6.5 Million for 30 Seconds This Year
Expecting Dual Success with Ioniq 5 and Electric Vehicles

Josh Jacobs, an NFL Las Vegas Raiders football player featured in Kia's 2020 Super Bowl commercial. The advertisement received praise for showcasing the player's challenging past and growth journey.

[Asia Economy Reporter Choi Dae-yeol] Kia has decided to air a 60-second commercial during the Super Bowl, the NFL championship game, scheduled for the 13th of next month (local time) in the United States. The ad will promote the EV6, the company’s first dedicated electric vehicle, which was recently officially launched locally.

The company had previously participated in Super Bowl ads consistently since 2010, while its sister company Hyundai Motor Company had done so since 2008, but both skipped last year’s event due to concerns that marketing effectiveness would be diminished by COVID-19. Kia is returning as a Super Bowl advertiser after two years, whereas Hyundai will not run an ad this time either. Instead, Hyundai has signed a sponsorship deal with SoFi Stadium, where this year’s Super Bowl will be held.

As the biggest sporting event in the U.S., Super Bowl commercials are watched by over 100 million people locally, generating a wide range of buzz on their own. USA Today, the best-selling newspaper in the U.S., even ranks ads based on favorability. Considering that the cost for a 30-second spot this year is estimated at around $6.5 million, this translates to approximately 260 million KRW per second. This is a considerable expense for a one-off marketing effort. Of course, the fact that advertisers choose to participate indicates they have calculated and judged that the benefits outweigh the costs.

2020 Super Bowl Hyundai Motor commercial. The story unfolds as famous actors examine and evaluate the Sonata's smart parking feature.

Just because a Super Bowl ad is praised as impressive does not necessarily mean the company’s products will sell in large numbers immediately. However, the ad can play a positive role in boosting corporate or brand awareness and impressions by being widely discussed among Americans for days or weeks after the game. Two years ago, Hyundai’s Super Bowl commercial showcased the latest features of the Sonata (Smart Park), featuring well-known local actors and sports stars set in Boston, which attracted attention.

Understanding local cultural codes was necessary to fully grasp the context and nuances of the ad, but ironically, this approach worked well. In 2016, Hyundai became the first non-American brand and the first automobile brand to top the Super Bowl ad preference survey. This signified that the company had established a stronger relationship with consumers in the highly competitive U.S. market, where all global brands compete fiercely.

The Hyundai Motor logo displayed on the scoreboard during the 2016 Super Bowl game. At that time, Hyundai's Genesis advertisement ranked first in overall preference, with many others placing high in the rankings.

Kia’s decision to promote an electric vehicle in this year’s ad is also noteworthy. Since Hyundai began delivering its first dedicated electric vehicle, the Ioniq 5, to customers locally last month, Kia has also just announced its market entry with the EV6. The U.S. is considered one of the world’s three largest electric vehicle markets alongside Europe and China, but in terms of electric vehicles alone, it lags far behind Europe and China.

This also means there is greater growth potential ahead, and thus a stronger need for more aggressive marketing to secure early market share. Excluding Tesla and domestic brands (Chevrolet, Ford), the best-selling electric vehicle models in the U.S. sell fewer than 20,000 units annually (Volkswagen ID.4 sold 16,742 units last year). Considering Hyundai Motor Group’s decision to establish electric vehicle production facilities in the U.S. and align with the federal government’s ‘Green Drive’ initiative, it is necessary to further elevate the company’s status as an electric vehicle maker and brand.

Kia's first dedicated electric vehicle, the EV6. It was recently officially launched in the United States with detailed pricing and specifications.

This content was produced with the assistance of AI translation services.