Ikea plans £30m media review out of local agencies

LONDON - The Swedish furniture giant Ikea is reviewing its £30m pan-European media planning and buying arrangements.

The home furnishings retailer, which is big in markets including Sweden, the UK and Germany, currently uses agencies on a local market basis, but is looking at changing this.

One agency source said: "Ikea is in the initial stages of deciding whether it is going to centralise."

Ikea's international marketing team, based in Helsingborg in Sweden, has spoken to representatives from at least two international media networks about the possibility of it consolidating its business.

It is said to be keen to promote greater levels of shared learning and information exchange between media agencies in different markets as well as create efficiencies.

MediaCom handles Ikea's £6 million planning and buying account in the UK and in the German market. Media-edge:cia works for the retailer in Sweden, Finland, Russia and The Netherlands. MindShare handles the business in Switzerland.

Ikea also uses local agencies to work on its creative account. In the UK, its in-house team works with Karmarama and in Germany it uses the independent agency Wiegertpirouzwolf. In addition, Hasan & Partners, which is part of McCann-Erickson, works on creative projects across Europe.

The retailer has traditionally taken a decentralised approach to its suppliers and has strong local management teams in each of its markets.

It recently moved Peter Hogsted, the head of marketing for Ikea in Denmark, to the post of managing director in the UK.

Nobody at Ikea's European headquarters was available for comment.

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