What: Furnishings giant Ikea has decided to conduct a global media agency review.
Why it matters: For its US $400 million annual marketing account, Ikea works with various shops across five holding companies for planning and buying GroupM’s MEC, which has the U.S. assignment, is likely going to participate in the review.
Furnishings giant Ikea joins the group of big marketers that have launched media agencies reviews (Coca-Cola, Procter & Gamble, Mondelez, L’Oréal and Johnson & Johnson, among others.)
The Netherlands-headquartered company has decided to conduct a global global media agency review for its US$ 400 million annual marketing and advertising account. The review will be handled by Consultancy ID Comms. In US alone, the company is said to had spent US$100 million in 2009.
Ikea works with various shops across five holding companies for planning and buying in other global geographies. GroupM’s MEC, which has the U.S. assignment, is among those companies and will most probably participate in the review. Dentsu Aegis Network has the business in the UK. In Asia, Ikea works with Vizeum in Singapore, Thailand and Malaysia.
The company said it would continue to work with its incumbent agencies in each local market during the review process.
“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,” said Ikea through a statement.