Volkswagen is reviewing its global media planning and buying account – covering brands such as VW, Audi, Skoda and Seat – which is currently owned by PHD.
The Germany-based car giant spent around 1.5 billion euros on its flagship VW brand alone in 2020. The media review – which was first reported in German HorizonT – is part of a statutory process, with Omnicom-owned PHD’s contract set to expire at the end of 2023. The previous global review lasted a year.
A Volkswagen spokesperson confirmed the news and posted Countryside a statement, which read: “Over the coming year, there will be a regular tender for the Volkswagen Group media agency contract, which has been in place since 2016 and runs until the end of 2023.
“This will be the responsibility of Jason Lusty, who has taken over group marketing in addition to branding and marketing. We ask for your understanding that we are not providing any further details.”
PHD was appointed in 2016 – taking over the account in 2017 – landing the Volkswagen Group’s then estimated $3bn (£2.35bn) business.
It was understood at the time that Volkswagen wanted to place more emphasis on the digital and programmatic of PHD.
Before appointing PHD in 2016, the Volkswagen Group had used WPP’s MediaCom since 1998. PHD already had a relationship with the car company, managing its luxury brands Bentley and Porsche globally and Seat in the UK.
The Volkswagen group also has a commercial vehicles and vans, MAN.
The Volkswagen Group is the second largest car manufacturer in the world behind Toyota. In FY20, it recorded revenue of €222.9 billion – down 11.8% compared to FY19 – due to the Covid-19 pandemic.
