The New Engine Backing the NFL
By: Anastasia Banks
September 15, 2015
I spent the 2014-15 NFL football season watching commercials and advertisements featuring GMC cars and trucks but found that it made me pay attention to a car maker I never really noticed before. So why would GMC give up their sponsorship relationship with the NFL? The sponsorship roughly cost GMC $25 million a year however, they were spending roughly $150 million a year in activities, events and additional marketing surrounding the league.
The question is, how big of a jump in revenue did the company experience with this level of investment? After over 10+ years as one of the major sponsors of the NFL, one would say that it wasn't enough to warrant the bill. This now has left the door wide open for a Japanese car maker to step into the biggest American sports arena to attract a potential new client base and increased revenue stream.
Hyundai has signed on to become the new automotive sponsor for the NFL which now gives them the ability to use the NFL name and trademarks in their advertising. This is huge for a car maker that doesn't carry one of the most American vehicles...the truck. How will the average NFL react to this new sponsor? Will Hyundai see a large enough impact on their revenue to validate this large investment and endeavor.
Personally, I feel this is a great move for Hyundai and a fail for GMC. GMC now has to compete alongside every other American automotive company without the help of the large NFL truck-driving demographic to draw numbers. I saw the GMC logo at least 100 times during last years Superbowl because it was plastered on every vehicle used by the league for players and executives. This amount of constant advertising is going to be hard to replace. Hyundai might just have found their golden ticket.
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GMC's loss is clearly Hyndai's gain in this turn of events. GMC thought they could do without the exposure or they figured that the return on the investment would continue to develop without more investment on their part. They were paying a pretty penny for the relationship and the same way your level of exposure was increased by all of the GMC ads, Hyundai will introduce itself to a very large market and hope to repeat that success. Great post!
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