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Volkswagen Increases Its Marketing Efficiency By 30% On Digital

The Volkswagen brand is planning the efficiency of its marketing for 2020 to improve by about 30%, while the marketing budget remains stable at €1.5 Billion.

Volkswagen says that digital contribution in 2015 was about 25% in a context of increasingly personal customer response. Today, the number of line items, such as movies or ads, is expected to increase 5x. In the future, the Volkswagen brand will decline its global network of about 40 branches to three major agencies. The Omnicom group will be accountable for South America, Europe, and WPP for North America, while Cheil will stay live for the Volkswagen branding in China.

From 2019 Volkswagen will combine its marketing initiatives in these regions in four new plants, which will be located in Berlin, São Paulo, New York, and Beijing.

Jurgen Stackmann, member of the Volkswagen Sales Council says, “The brand should be managed in a more centralized and leaner way with new alliance that attain an exceptional level of innovation in marketing with our landscape more emphasized on agency and enlargement the deep transformation of Volkswagen, which next year will be clear to our customers with the world’s first ID, our marketing will fundamentally change.”

Jochen Sengpiehl, Marketing Director (CMO) brand of Volkswagen Passenger Cars, said: “Thanks to our new sales model, we can commune directly with the customer in the future. In the past, direct contact was subject of concern for the dealers. In the future, we will offer much more than before.”

In the coming period, straightforward amid customers and Volkswagen will be administered through a personal customer ID, which is launched with a novel sales system, to be integrated from 2020. The company also stated that this will enable individualized and holistic customer experience with all the POC with the automakers which is applicable for marketing as well.