In an unusual arrangement, IKEA has consolidated its global media account with two separate holding companies sharing the business.
Following a review led by ID Comms and MediaPath, IKEA’s media buying and planning business will be handled by WPP’s GroupM and Dentsu Aegis. Local marketers in IKEA groups will be able to select from either holding company’s operations, which could result in a six way pitch between GroupM and Dentsu Aegis agencies for specific markets.
We think it safe to say neither holding company will be completely satisfied with this news. Separate reviews for IKEA’s U.S. and U.K. media accounts are ongoing.
“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,” an IKEA representative said in a statement.
“IKEA started this current global review process in April 2016 with the help of our strategic media consultancy partners, ID Comms, and our media audit partner, MediaPath. After our search and having received four very strong strategic proposals, we are pleased to announce we will be working with both GroupM and Dentsu Aegis. We thank all the agency groups for participating and for all their hard work.”
Most IKEA groups are expected to select their respective WPP/Dentsu agencies by the end of the year, which should result in a bunch of mini-pitches pitting the holding companies against one another in local markets. Fun times for all!