• by Joe Mandese  @mp_joemandese, January 8, 2008

In a strong start to the New Year for Interpublic's Initiative unit, World Marketing Group has tapped it as the media services agency for the $800 million Hyundai Motor America and Kia Motors America accounts. The move follows an impressive turnaround year for Initiative in 2007 that saw new business wins like Bayer and Quiznos and an expansion of assignments from flagship clients such as CBS and Showtime, and likely puts the shop at new business capacity until it can expand its burgeoning organization.

"We are thrilled to have been selected as media and marketing partner with Hyundai and Kia, two of the fastest-growing players in the automotive category," Initiative CEO Richard Beaven, said in a statement issued by Initiative as news of the win leaked out late Monday. "Like us and our existing clients, Hyundai and Kia believe in the power of media to transform marketing results, and we are keen to work with such like-minded individuals during this important and challenging time for the industry."

The assignments marks the end of one of the most closely watched reviews of late 2007, and takes some wind out of the sails of two other finalists in the pitch: incumbent Carat; and challenger Havas Media.

On the bright side, the account frees Carat, which has serviced the consolidated Korean automotive account since 2002, to pitch other automotive business in an industry that's becoming increasingly narrow in terms of big media agencies with the kind of resources to service such accounts. Carat already has a foothold on General Motors business, having won the auto giant's European media account last year, and services about six other automotive brands around the world.

"Every time a [domestic] automotive account has gone into review, we have had to say 'no,'" Sarah Fay, CEO of Carat North America, told MediaDailyNews following news of the Hyundai/Kia account loss.

Acknowledging that the Hyundai/Kia account was a significant loss, Fay nonetheless said Carat is "in pretty good shape" as it enters 2008, following some significant 2007 wins such as Pernod and Outback Steakhouse, as well as an expansion of business from existing clients.