Volkswagen hands £2bn media account to Omnicon’s PHD
Volkswagen has picked Omnicom’s PHD to handle its £2bn media account as it puts the finishing touches to a strategy that will lean heavily on cost-cuts and more electric cars.
The German car maker picked the agency over incumbent WPP’s Mediacom and Interpublic’s Mediabrands to handle the media plans for brands such as VW, Skoda and Audi on more than 30 countries. It builds on the automotive company’s existing ties to the media shop following its work for premium brands Bentley and Porsche globally alongside Seat in the UK.
The account was one of the most high-profile from the flurry of accounts that were reviewed last year in what has now become known as ‘Mediapalooza’. VW continued its review during the emissions scandal in which admitted to cheating in emissions tests.
In order to offset the consequential fines and recalls, the business has identified around €1.9bn in savings at its namesake car brand, meaning it will likely look to sweat its media buys more in an attempt to ease some of the financial pressure.