LOS ANGELES Swedish home-furnishings retailer Ikea has tapped independent Horizon Media to handle its estimated $40 million North American planning and buying account, the agency said this week.
Horizon, which has been responsible for the client's Los Angeles-area media since April 2004, was awarded the rest of the U.S. market without a review, the agency said. The account will be handled from Horizon's Los Angeles and New York offices.
Headquartered in Philadelphia, Ikea North America currently operates stores in 32 countries and 22 locations in the U.S. The company said it plans to open five new American stores each year.
In 2004, Ikea's total North American advertising budget was $40 million, per Nielsen Monitor-Plus. Creative work comes from Santa Monica, Calif., independent Secret Weapon, and Anita Santiago Agency, also in Santa Monica, crafts the company's Hispanic marketing efforts.
U.S. media and creative had previously been handled by MDC Partners' Crispin Porter + Bogusky, Miami.
With the addition of Ikea—as well as other recently signed clients such as Vivendi Universal's interactive gaming division and online banking firm ING Direct—Horizon's 2005 annual billings are expected to exceed $1 billion for the first time since operations began in 1989, according to agency Western Region executive vice president and general manager Zach Rosenberg. The agency reported billings of over $950 million in 2004.