Kia Sales Success Sparked by Dancing Hamsters

Meet the Kia Hamsters
Meet the Kia Hamsters

Last Sunday night Kia, the Korean car company, introduced its fifth in a series of videos featuring a trio of happy hamsters tooling around in Kia cars. This particular video shows us the loveable, if overweight hamsters (well, they are not overweight for hamsters, unless you think a hamster 6 feet tall and weighing in at about 250 pounds is overweight-but for hamsters they look just fine) getting into shape for an upcoming premiere. Take a look below and decide if you think a hamster should be as thin as these get by the end of their exercise regime.

The real question here is not if you think the rodents over do the workout, but if Kia is spending its advertising budget prudently. The data shows the answer to this question is a resounding yes. Sales have doubled during the past five years since Kia launched its furry creatures into the marketplace to sell their cars. And, as it turns out, for not that much money, really.

Let’s do some comparisons with other car makers and their ad budgets. Kia spent $4.3 billion in the past five years, or about 2.6 percent of revenue. Sounds like a lot of money, right? Wrong. General Motors spent, $24.2 billion, 3.5 percent of revenue, and Ford Motor coughed up $19.9 billion, about 3 percent of revenue. And honestly, which ads will you remember, the traditional Ford ads with cars whizzing through beautiful, but boring landscapes, or three giant hamsters under hairdryers clinching their ‘dos.
‘Nough said.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com