Volkswagen awards global media business to Omnicom's PHD
Volkswagen Group has selected Omnicom Media Group as its global media agency following a lengthy competitive review.
Omnicom's contract starts on Jan. 1, 2017 and covers the global media budget for VW's eight car brands including VW, Audi, Porsche, Seat, Skoda and VW commercial vehicles.
VW's media strategy will focus more strongly on new digital challenges, the automaker said in a statement Monday. New digitalization possibilities and new ways of targeting specific groups will be put to much greater use in media planning, VW said.
Advertising Age, an affiliate of Automotive News Europe first reported that Omnicom had won the contract.
WPP's Mediacom had handled most of the business, including in the U.S. The shop had a lengthy relationship with the automaker. Omnicom's PHD was an incumbent on the Porsche business.
Volkswagen spent more than $3 billion on measured media worldwide in 2014, ranking it as the globe's sixth-largest advertiser, according to the most recent information from the Ad Age Datacenter.
In the U.S., the VW business will be handled by a separate Omnicom Media Group unit dedicated to VW Group, just as Porsche is handled today.
The agency change comes as VW Group continues to deal with fallout from an emissions cheating scandal that broke late last year. Volkswagen of America recently reported its worst May U.S. sales total since 2011.