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

Volvo is shaking up its media agency roster 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 of China, with key markets including the U.S., U.K., Germany, Sweden, Japan, Australia, Korea. Work will begin in 2025 after a brief 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,” a Volvo spokesperson said. “We have appointed Initiative, powered by IPG, to lead our media strategy, planning and buying, in all regions with the exception of China. Together, we will build on the strong foundation of our brand, delivering a seamless, premium and integrated experience for our consumers worldwide.”

Initiative declined to comment.

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

Volvo’s media spend is roughly $500 million, according to COMvergence.

The review for the automaker’s global media planning and buying business kicked off in August. The pitch was run by MediaSense.

Earlier in December, Campaign reported that the pitch had been narrowed down to three potential winners: IPG, WPP, and Publicis.

The win for Initiative comes weeks after IPG announced it would be acquired by Omnicom. It’s not clear how the combined entities’ media departments will factor into the way the Volvo account is staffed and managed, or whether news of the acquisition influenced the appointment.

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