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Ikea Set to Appoint Canadian Agency

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LOS ANGELES Ikea is expected to name a Canadian agency to handle advertising in that country within the next week, according to a representative for the Swedish furniture maker.

The move comes as Ikea establishes a marketing department in its Canadian headquarters of Burlington, Ontario, in an effort "to get closer to the consumer," an Ikea rep said. The client previously led Canadian marketing out of its U.S. base in Plymouth Meeting, Pa., with MDC Partners' Crispin Porter + Bogusky in Miami handling North America advertising. The shop retains U.S. duties.

Ikea spent $40 million on U.S. media in 2003, according to Nielsen Monitor-Plus. Past spending for Canada could not be determined.

Ikea's formation of a Canadian marketing department "is in keeping with their gradual movement of key departments to their Canadian headquarters. And it is a move that we fully support," said CP+B chief executive officer and partner Jeff Hicks, in a statement. "We are proud that the work that we have done for Ikea Canada has played a part in the growth of their Canadian business to the point that they are able to support their own programs and initiatives."

The client had a Canadian agency in mind and did not conduct a review, said Laurence Martocq, a representative for Ikea in Canada. The company is currently in negotiations with a shop, Martocq added.

Ikea began forming its Canadian marketing department in January. Ikea Canada president Luc Lauwers is currently overseeing the agency selection until an external communications manager is found, said Martocq.