PSA to review its £76m UK media business

PSA, the French automotive company that owns the Peugeot and Citroen brands, is reviewing its £76 million UK media planning and buying account.

The review is part of a wider rolling review process that will also take place in several other European countries this year.

OMD UK holds the UK account after Carat Group resigned it three years ago in favour of building a global relationship with Renault. PSA plans to start the review this summer as contracts reach their end in several markets.

PSA also appointed OMD in Germany, Switzerland and Hungary at the same time as in the UK. Media Planning Group handles the account in France, Spain and Belgium.

Some, if not all, of these markets are expected to be reviewed at the same time as the UK. Insiders suggest that PSA's £180 million French account will form part of the review.

PSA spends £40 million on UK advertising for the Peugeot brand and £36 million on Citroen. Creative, which is held by Euro RSCG London, is not being reviewed.

OMD UK triumphed over Initiative, Media Planning Group and ZenithOptimedia when it landed the account in 2001. It intends to repitch for the UK account.

PSA is currently planning a rapid expansion of its operations, that includes hiring an extra 7,000 employees in France to meet its target of selling four million cars during 2006.

It is also in the process of launching new model ranges to reach the planned goal of introducing 26 new models across its markets between 2003 and 2006.


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