CreativeOndemand | Agency Profile, Contacts, AOR, Client Relationships

• The review originally began in 2021 and has ramped back up since incumbent media AOR 's contract was set to expire at the end of 2023.
  • Because the review was postponed and now needs more time, though, Volkswagen has extended its contract with PHD until the end of 2024.
  • When the company hired PHD in 2016, it wanted a stronger focus on digital and programmatic.
• We predicted agency reviews would follow November's leadership shifts.
• The process is now underway and includes all of Volkswagen's brands.
• The company will likely:
  • Shift strategy, especially in 2025
  • Keep increasing spend
  • Seek additional new agency partners once this review concludes
• Target demographic: 
  • A dad-oriented audience ranging from Gen-Z through Gen-X

Additional spending insights:

• Broadcast insights (TV ad creative spend, effectiveness, impressions, and performance)
  • YTD spend: Volkswagen has spent approximately $41.8m on national TV commercials YTD, more than double the $17.9m spent by this point of 2022.
  • Last year: The company spent about $78.7m on this channel last year after having spent 27% more, about $99.6m, in 2021.
  • 2023 ad programming: Volkswagen's 2023 commercials have targeted male sports enthusiasts watching shows such as NFL Football, NBA Basketball, College Football, Jimmy Kimmel Live, and MLB Baseball.
• Digital and social insights (digital ad spend, effectiveness, impressions, and performance)
  • YTD spend: So far this year, the automaker has allocated roughly $12m toward digital ads, 62% more than the roughly $7.4m allocated within the same 2022 timeframe.
  • YTD data: Volkswagen has earned around 1.2b digital impressions YTD via YouTube (54%), Instagram (24%), Facebook (17%), desktop video (3%), desktop display (1%), and mobile display (1%) ads.
  • Last year: In 2022, the company's estimated full-year spend decreased by 36% to $23.6m from that of $36.9m in 2021.
• Additional channel insights  
  • The company utilizes Google Ads along with digital, local broadcast, radio, OOH, print, Facebook, Instagram, TikTok, Twitter, and online video (via Youtube.com, Youtube Android, and Youtube IOS) ads.
  • Volkswagen sponsors podcasts such as The Joe Rogan Experience, CBC News: World Report, WSJ What's News, StarTalk Radio, and F1: Beyond The Grid.
    • The company invests in short-form DRTV.
    • I​​​​​​​t has very highly concentrated network TV coverage and will not likely launch a new campaign soon.

Additional agency insights:

• Opportunity: Get in touch soon to participate in this review and keep Volkswagen on your radar for additional ones when it concludes.
• Current agency roster:
  • ​​​​​​​PHD USA: Media AOR (2016)
  • : Creative AOR
  • : Creative and multicultural AOR
  • December 2018)
  • : PR agency partner

Insight Sources: Broadcast insights estimated by .