It’s a pivotal move for Omnicom Media Group’s PHD, which beat WPP’s MediaCom and Interpublic’s Mediabrands to beat the German automaker, the world’s fifth-largest advertiser, in a global consolidation spanning more than 30 countries.
Volkswagen has been a MediaCom since 1998 and the WPP network has handled approximately 90% of its global media plans and purchases, bringing its major brands such as VW, Audi, Skoda and Seat to as many foreign territories as possible.
PHD already had a relationship with Volkswagen, controlling high-end brands Bentley and Porsche globally, as well as Seat in the UK.
Volkswagen began its overhaul a year ago as part of what has been dubbed Mediapalooza, as a number of big-budget advertisers have touted their media buys, and it has continued the process despite a first diesel emissions manipulation scandal in 2017. United States in September.
Volkswagen is estimated to spend around £2 billion, or just around $3 billion, globally on media. The victory is expected to increase PHD’s spending by almost £100 million in the UK alone.
It is understood that Volkswagen will place greater emphasis on the virtual and programmatic with PHD, which will take over the account from 2017.
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