Volkswagen is reviewing its global media planning and buying account.
The automotive company’s contract with PHD expires at the end of 2023 so we can expect to see a marathon global media pitch.
The $4 billion ($5.5 billion AUD) contract spans brands such as Volkswagen itself, Audi, Skoda and Seat.
The Germany-based automotive company spent €1.5 billion ($2.3 billion AUD) on the Volkswagen brand alone in 2020.
The media review, reported in German media outlet HorizonT, is a part of a statutory process process.
The previous global review lasted a year.
Volkswagen told Campaign: “In the coming year, there will be a regular tender for the Volkswagen Group’s media agency contract, which has been in place since 2016 and runs until the end of 2023.
“This will be the responsibility of Jason Lusty, who has taken over group marketing in addition to brand and marketing strategy. We ask for your understanding that we are not providing any further details.”
The announcement from Volkswagen comes as PHD has promoted their current head of strategy for APAC, Chris Stephenson, to global CMO.
Stephenson will succeed Avril Canavan who will now work as a freelance marketing consultant.
B&T reached out to a representative from PHD about Volkswagen pitching it’s media globally, however they provided no comment.
PHD was appointed to the account in 2016, with Volkswagen wanting a greater emphasis on digital and programmatic from the agency.
Prior to PHD holding the account, Volkswagen used WPP’s MediaCom since 1998.
PHD handled Bentley and Porsche globally and Seat in the UK prior to 2016.
