Who will drive away with Hero MotoCorp’s Rs 400 crore media mandate?

The competition for Hero MotoCorp ’s media mandate, valued at around Rs 400 crore, has intensified with agencies like Dentsu, IPG, GroupM, Publicis, and Havas in contention.

“It’s been hanging for a long time with no further filtration from the Hero team,” said a source, but results are expected post-Diwali.

Publicis, the incumbent agency, is defending its position as Hero MotoCorp ’s media partner. According to the Pitch Madison Advertising Report 2024 , Hero MotoCorp allocated between Rs 500-600 crore to advertising last year, making this a highly competitive pitch.

Simultaneously, Tata Motors has invited a pitch for its passenger vehicle mandate, including OOH, digital, media, and creative services, adding another Rs 450 crore to the pot.

IPG, the incumbent agency, remains a strong contender for Tata Motors' media mandate, but the company is open to considering new perspectives. Unlike Hero MotoCorp 's pitch, which is dominated by major agencies, Tata Motors has attracted interest from several smaller agencies as well, widening the competition.

“Tata has said if we have fresh ideas, they are ready to listen and consider,” said an agency head involved in the pitch.

Another source close to the account emphasised, “Pricing will be an important factor in both accounts.”

Together, Hero MotoCorp and Tata Motors represent a significant Rs 850 crore opportunity in the automotive sector.

The race for these accounts is heating up, and agencies are keenly awaiting the results, which are expected before the year ends.

As per the Pitch Madison Advertising Report 2024, the automotive sector advertising spends has surged, making it the third-largest category in AdEx. This growth is driven by the booming demand for mid-level cars and SUVs, which has led to an 18% increase in traditional ad spends.

Brands are also investing heavily in digital channels to target younger audiences, reflecting a broader shift towards online consumer engagement. The rise of electric vehicles (EVs) is expected to further transform the sector, with companies poised to increase ad budgets for promoting sustainability and innovation. This evolving landscape underscores the fierce competition for agency partnerships as automakers seek to enhance brand visibility and consumer connection.

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The competition for Hero MotoCorp ’s media mandate, valued at around Rs 400 crore, has intensified with agencies like Dentsu, IPG, GroupM, Publicis, and Havas in contention.

“It’s been hanging for a long time with no further filtration from the Hero team,” said a source, but results are expected post-Diwali.

Publicis, the incumbent agency, is defending its position as Hero MotoCorp ’s media partner. According to the Pitch Madison Advertising Report 2024 , Hero MotoCorp allocated between Rs 500-600 crore to advertising last year, making this a highly competitive pitch.

Simultaneously, Tata Motors has invited a pitch for its passenger vehicle mandate, including OOH, digital, media, and creative services, adding another Rs 450 crore to the pot.

IPG, the incumbent agency, remains a strong contender for Tata Motors' media mandate, but the company is open to considering new perspectives. Unlike Hero MotoCorp 's pitch, which is dominated by major agencies, Tata Motors has attracted interest from several smaller agencies as well, widening the competition.

“Tata has said if we have fresh ideas, they are ready to listen and consider,” said an agency head involved in the pitch.

Another source close to the account emphasised, “Pricing will be an important factor in both accounts.”

Together, Hero MotoCorp and Tata Motors represent a significant Rs 850 crore opportunity in the automotive sector.

The race for these accounts is heating up, and agencies are keenly awaiting the results, which are expected before the year ends.

As per the Pitch Madison Advertising Report 2024, the automotive sector advertising spends has surged, making it the third-largest category in AdEx. This growth is driven by the booming demand for mid-level cars and SUVs, which has led to an 18% increase in traditional ad spends.

Brands are also investing heavily in digital channels to target younger audiences, reflecting a broader shift towards online consumer engagement. The rise of electric vehicles (EVs) is expected to further transform the sector, with companies poised to increase ad budgets for promoting sustainability and innovation. This evolving landscape underscores the fierce competition for agency partnerships as automakers seek to enhance brand visibility and consumer connection.