Volkswagen Brand Selects WPP, Omnicom, Cheil as Lead Agencies Amid Global Ad Network Cut
November 26 2018 - 9:52AM
Dow Jones News
By Max Bernhard
Volkswagen AG's (VOW.XE) namesake passenger car brand plans to
cut its advertising network from about 40 agencies to three lead
agencies, including WPP PLC (WPP.LN), Omnicom Group Inc. (OMC) and
Cheil Worldwide Inc. (030000.SE), as part of efforts to boost
marketing efficiency.
WPP will be responsible for North America, while Omnicom will
cover Europe and South America and Cheil will continue its work for
the marque in China, the VW brand said Monday.
The brand said it will pool its marketing activities for those
regions in four new locations in Berlin, New York, São Paulo and
Beijing. Marketing will be managed in a "leaner, more centralized
way," said Jurgen Stackmann, the brand's sales chief.
The move is part of a plan to improve marketing efficiency at
the brand by about 30% by 2020, while keeping the media budget
stable at 1.5 billion euros. As part of the strategy, the VW brand
aims to grow its digital-media share to close to 50% by 2020
compared with about 25% in 2015, it said.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
November 26, 2018 09:37 ET (14:37 GMT)
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