IPG’s Initiative Wins Volvo’s $500 Million Media Account

Volvo shakes up its list of media agencies for the first time in 25 years.

IPG Mediabrands’ initiative has won Volvo’s global media review, ADWEEK has learned.

The account spans all regions outside China, with key markets including the US, UK, Germany, Sweden, Japan, Australia, Korea. Work will begin in 2025 after a short transition period, according to sources, Volvo confirmed.

“We regularly evaluate our agency model and operations to ensure we are equipped with the right technologies, agility and efficiency,” said a Volvo spokesperson. “We have appointed Initiativa, powered by IPG, to lead our media strategy, planning and buying, in all regions except China. Together, we will build on the strong foundation of our brand, offering a seamless experience, premium and integrated for our consumers around the world.

The initiative declined to comment.

The win is a blow for the incumbent, WPP’s Mindshare, which has held the account in various markets for the past 25 years.

Volvo’s average spending is about $500 million, according to COMvergence.

The review for the automaker’s global media planning and purchasing business was launched in August. The pitch was handled by MediaSense.

Before December, Reported campaign that the pitch had been narrowed down to three potential winners: IPG, WPP and Publicis.

The victory for the Initiative comes weeks later IPG announced that it would be acquired by Omnicom. It is not clear how the media departments of the combined entities will factor into the way the Volvo account is customized and managed, or if the news of the acquisition has influenced the appointment.

Volvo reported a 12% drop in net sales (7% adjusted for currency) worldwide in its most recent earnings report, as consumers deal with continued inflation and economic uncertainty.