Lindsay Stein
Nov 27, 2018

Volkswagen consolidates global creative

Cheil wins China business while Omnicom brief is believed to include India & Australia alongside Europe and South America, while WPP takes North America.

Volkswagen consolidates global creative

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 Cheil in China, Omnicom in Europe and South America and WPP in North America. 

VW had previously worked with Omnicom’s Adam & Eve/DDB in London and sibling shop DDB Berlin and it is understood that the auto-maker has retained these agencies. Omnicom's brief is believed to include Australia, India, Russia, South Africa and Latin America,  sources say.
 
In China, Cheil had worked with VW's FAW joint-venture but this win represents a new mandate in China for the Volkswagen brand.

WPP's winning North American team was led by Possible, Geometry and David in the pitch, with support from a few other agencies, people with knowledge of the matter told Campaign.

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, VW is aiming to keep  its marketing budget stable by 2020 at $1.7 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.

This article has been edited to clarify Cheil's previous involvement with VW in China.

Source:
Campaign US

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