Volkswagen taps WPP to handle North American creative

In the future, Volkswagen will steer its marketing activities via three lead agencies which will operate four new creative powerhouses in the brand’s key regions.
In the future, Volkswagen will steer its marketing activities via three lead agencies which will operate four new creative powerhouses in the brand’s key regions.

Omnicom will focus on Europe and South America, while Cheil will handle China.

As part of Volkswagen’s push to improve marketing efficiency by 2020, the automotive brand has reduced its global network from about 40 agency partners to three creative leads, including WPP in North America, Omnicom in Europe and South America and Cheil in China.

Possible, Geometry and David led WPP’s team in the pitch, with support from a few other agencies, people with knowledge of the matter told Campaign. 

VW had previously worked with Omnicom’s Adam & Eve/DDB in London and sibling shop DDB Berlin and Cheil in China and it is understood that the auto-maker has retained these agencies.
Omnicom's brief is believed to include Latin America, Australia, India, Russia and South Africa, sources say.

The review kicked off this spring as part of CMO Jochen Sengpiehl’s long-term marketing strategy to create a series of regional agency "powerhouses."

According to a press release Monday morning, VW is aiming to keep  its marketing budget stable by 2020 at $1.7 billion (€1.5 billion).

Jürgen Stackmann, board member responsible for sales of the Volkswagen brand, said in a press release: "The brand is to be managed in a leaner, more centralized way. With the new partnerships, we will reach an unprecedented level of innovative power in marketing. Thanks to our more focused agency landscape and the expansion of our digital activities, we will become significantly more efficient. The far-reaching transformation of Volkswagen, which will also become evident to our customers next year with the world premiere of our ID., will fundamentally change our marketing."

The automaker intends on focusing its marketing on four areas going forward, including product, digital platforms, brand platforms and brand design.

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