Honda has put a significant portion of its U.S. media account under review. Up for grabs is the automaker’s so-called Tier 2 media business, which includes regional advertising that is often used to plug sales incentives and is closely linked with individual dealer efforts.
RPA currently handles Honda’s national creative and media business, including some Tier 2 media work. Other agencies involved in Tier 2 media include Horizon Media. Honda Motor Co. spent $1.39 billion on U.S. advertising in 2019, including the Honda and Acura brands, according to the latest figures from the Ad Age Datacenter. (The figure does not include the entirety of dealer association spending that is a part of the review.) A person familiar with the review suggests the Tier 2 account could represent as much as $550 million in spending.
“We have begun a process to assess which agencies have the capabilities to support our DAAs,” American Honda said in a statement to Ad Age, referring to its dealer ad associations. “The DAAs will then be able to select from this list of agencies. While we are not confirming the overall spend for Tier 2 advertising, we will have more information to share once we have completed the process of assessing the eligible agencies.”