Volvo has awarded its media account to IPG’s Initiative after 25 years with incumbent WPP’s Mindshare.
The account spans key markets, including the U.S., U.K., Germany, Sweden, Japan, Australia, and Korea. Work will begin in 2025 after a brief transition period, as reported by Ad Week.
A Volvo spokesperson told Mediaweek: “We regularly evaluate our agency model and operations to ensure we are equipped with the right technologies, agility, and efficiency.
“We have appointed Initiative, powered by IPG, to lead our media strategy, planning and buying, in all regions with the exception of China.”
Mediaweek has reached out to Initiative Australia for comment.
The Swedish car manufacturer’s media spend is approximately $500 million, according to COMvergence.
News of Initiative winning Volvo’s global media account comes after Omnicom acquired Interpublic Group in December.
The board of directors for the holding companies unanimously approved a definitive agreement pursuant to which Omnicom will acquire Interpublic in a stock-for-stock transaction.
The acquisition of Interpublic will make the combined holding companies the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products.
Agencies under Interpublic include Initiative, Kinesso, Magna, McCann, Mediahub, R/GA and UM. These add to Omnicom’s current stable of Hearts & Science, OMD, PHD, BBDO, TBWA and Flywheel.
The new Omnicom will have over 100,000 expert practitioners. The company will deliver end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.
At the time, Mediaweek spoke with industry figures to get their thoughts and opinions on the acquisition, the global and local impact, and what it means for the future of the media and marketing industry.
Media industry veteran Mat Baxter told Mediaweek that at a global level, it was a “complementary acquisition”, while from a geographical and historical perspective, it plugged IPG’s market and geographical weaknesses
“It’s a potent combination to be bringing those two networks together. In terms of creating geographical global dominance in all critical marketplaces, the two combined are a powerful force.”
Darren Woolley, CEO of TrinityP3, said: “Let’s call this for what it is – a takeover. The Omnicom IPG Group ‘merger’ is continuing evidence that the major holding companies are pursuing a strategy of scale and efficiency in the face of multiple business and economic challenges.”
“The deal will make 2025 very interesting. Let’s remember that OMG and Publicis tried a ‘merger of equals’ in 2013 before cultural and client conflicts scuppered the deal. This is a takeover that will provide the opportunity to rationalise the underperforming media agency brands.
Julia Vargiu, director Australia, SI Partners, added: “The reality is, there are too many agencies chasing a finite pool of clients, and we can expect more mergers across different sectors as businesses streamline their offerings.”
See also: Omnicom acquires Interpublic Group: ‘Now is the perfect time’