Ikea Sticks With Mediaedge:cia for Planning, Buying in U.S.

Decision Comes After Global Procurement-Led Review

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NEW YORK (AdAge.com) -- WPP's Mediaedge:cia has retained traditional and digital media-planning and -buying duties in the U.S. for Ikea as part of the retailer's global media review, beating out independent shop Horizon Media, according to the marketer. The account is worth nearly $90 million.

Credit: AP
A spokesperson for Ikea told Ad Age the agency's use and integration of digital into the overall marketing strategy was the reason it stayed with Mediaedge:cia. "With the media landscape changing to online, the way they looked at digital, it was incorporated into the overall corporate strategy and not something in a silo or a subset," the spokesperson said.

Ikea spent $90 million on measured media in 2008, according to TNS Media Intelligence, and $34.5 million in the first six months of this year.

As part of the procurement-led review, the Swedish furniture maker also recently awarded its $16 million U.K. media account to Aegis' Vizeum, which beat out the incumbent, MediaCom. The WPP agency had held the business since 2005. Both Mediaedge:cia and MediaCom have held much of the retailer's media business since 2005.

With the media review finally wrapped, the company will now look to get things in order on the creative side. As first reported by Ad Age, Ikea launched a major creative push to integrate its general market and Hispanic creative.

"Ikea is evaluating all creative agency partners and identifying areas for improved communication effectiveness and efficiencies," Leontyne Green, marketing manager for Ikea U.S., told Ad Age. "Integration of general market and Hispanic creative could afford Ikea the best opportunity to develop breakthrough messaging and establish a more-integrated approach to marketing communications."

Its desire to do just that has been evident in recent marketing ventures, which have included the use of branded entertainment such as movie integrations with "Mamma Mia!" and "(500) Days of Summer" as well as the branded webisode series "Easy to Assemble," featuring actors Illeana Douglas, Justine Bateman and Tom Arnold. This past summer it held an in-store opera as well as and an in January, in honor of Barack Obama's inauguration, it ran an out-of-home campaign called "Embrace Change," which featured a replica of the Oval Office in a train station.

Ikea had sales of $30 billion, for the year-long period ended Aug. 31, a bump of 1.4% from the year prior. Ikea has 267 stores around the world.

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