Ikea launches $430 million global media review

Be the first to comment

The home furnishings giant currently works with at least five holding groups

Ikea is reviewing its estimated €400 million ($434 million) global media-buying arrangements with at least five agency holding groups.

It is not clear if Ikea plans to consolidate its buying with fewer agencies.

WPP's Group M is believed to be the agency group that has the single, largest part of Ikea's business, but all of the five biggest ad groups handle the Swedish furniture giant in different territories.

An Ikea spokesperson said: "As part of our commitment to the ongoing improvement of our media and marketing governance, Ikea periodically evaluates all marketing service suppliers to ensure we maintain the best working relationships with the best agency partners.

"Ikea is currently in the process of reviewing its media agency suppliers globally. ID Comms, our media consultancy partners, will be helping us facilitate this process.

"We will continue to work with our incumbent agencies in each local market during this process."

Ikea reportedly began reviewing its creative and media arrangements a year ago, but the process with ID Comms is a new move.

The company has annual revenues of €32 billion.

This article first appeared on campaignlive.co.uk.