Volkswagen is retaining WPP’s MediaCom as its primary media agency for another three years, the agency said Tuesday. According to RECMA, the car maker spent just over $3.1 billion on ads globally in 2012. The billings tracker hasn’t issued final 2013 spending numbers yet.
The shop has handled much of VW’s business since 1998. It added the U.S. after a review in 2005 and is adding Poland,
effective with the new contract extension.
The shop now handles VW media in more than 30 markets around the globe, according to the agency.
The decision to extend the agreement came without a formal pitch process, although it is believed that the client did hold a competitive pricing exercise among several shops. The other agencies involved could not be immediately ascertained.
In the U.S., Volkswagen spent $526 million on ads in 2013 according to Kantar. That was down about 3% from the $543 million the company spent in the region in 2012.
MediaCom will continue to provide strategic media insight and planning and buying services for all Volkswagen Group brands including VW, Audi, SEAT, Skoda and VW Commercial Vehicles. It will also add commercial vehicle brand MAN to its assignment for the first time.
"Working together for more than 15 years has enabled our experts to truly understand the needs and ambitions of all five brands, as well as the mind-set of potential purchasers," said Stephen Allan, Worldwide Chairman and CEO of MediaCom. "In the next three years, we’ll be working hard to take that even further and understand how purchase decisions change and evolve as the media landscape continues to develop.”