In the UK, the business is worth around £1m and was previously handled by ZenithOptimedia.
Continental is stepping up its spend in the UK and other markets as part of its support of football and sponsorship of the football World Cup in Germany in 2006. Continental has also been a sponsor of the Champions League.
Initiative is handling the account from Hamburg because Continental is based in Germany. Pan-European creative is developed by German agency Change and adapted locally. Palmer Halgreaves Wallis Tomlinson has adapted UK work.
In the UK, Initiative's work will focus on the Continental, Uniroyal and Semperit brands.
Jerry Hill, chief executive of Initiative, said: "Continental is a highly respected, leading brand and we are looking forward to helping them implement powerful communication properties to support their UK development."
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