Havas Suffers Setback as Arnold Worldwide Loses Volkswagen Account
Havas, a leading marketing services group, has suffered a significant setback with the loss of the Volkswagen account in the US and Canada. The carmaker has awarded the estimated $350 million a year advertising account to Crispin Porter + Bogusky, a small Miami-based agency known for its unconventional marketing approach. This move comes at a sensitive time for Havas, which is still reeling from a June takeover by French investor Vincent Bollore. The loss of the Volkswagen account raises questions about Havas' ability to retain big clients and implement its plans for stability and independence.
Key Takeaways:
- Havas' Arnold Worldwide unit has lost the Volkswagen advertising account in the US and Canada, worth an estimated $350 million a year.
- The account was awarded to Crispin Porter + Bogusky, a small Miami-based agency, without a formal review.
- The loss comes at a sensitive time for Havas, following a June takeover by French investor Vincent Bollore.
- Volkswagen's executive vice-president, Len Hunt, stated that the company needs to take bold steps to turn its business around in North America.
- Havas chairman and CEO, Vincent Bollore, had pledged to end stability at the company and maintain its independence.
- Kerri Martin, Volkswagen's director of brand innovation, worked on the introduction of the BMW Mini and is now leaving the company.
- Crispin Porter + Bogusky's unconventional marketing approach, which includes stunts like driving cars on sports utility vehicles, is appealing to clients looking for publicity without big costs.
Statistics:
- Estimated value of the Volkswagen advertising account: $350 million a year.
- Length of time Crispin Porter + Bogusky will have to prepare for Volkswagen's product launch: 18-24 months.
- Value of the product launch budget: Not specified.
Sources:
- "Havas Suffers Setback as Arnold Worldwide Loses Volkswagen Account" (The Financial Times, August 2012)