Ikea picks Mediaedge:cia and MediaCom for €200m global media task

by Sam Matthews, Brand Republic 12-Aug-05, 13:00

LONDON - Ikea has split its estimated €200m (£137m) global media account between two WPP Group agencies Mediaedge:cia and MediaCom, with Omnicom's OMD losing out.

Mediaedge:cia has won 55% and MediaCom 45%, which includes the UK business. However, the account could be worth as much as €300m (£206m).

Mediaedge:cia increased its coverage from five to 14 territories including the newly won Belgium, Canada and the US, while retaining China, Finland, the Netherlands, Russia and Sweden.

MediaCom retained the Ikea account in the UK, Germany and Denmark and won a further seven markets including France, Spain, Portugal and Australia.

OMD was shortlisted for the business in June but lost out in the final shootout.

The Swedish homeware retailer previously used 14 different agencies in different markets, but said it saw the Mediaedge:cia and MediaCom split as more cost-effective option.

One of the factors in Mediaedge:cia and Mediacom's favour was their joint WPP ownership. Ikea said that during the pitch it saw the two as giving it the possibility to work more cost efficiently and improve the sharing of information and best practices.

"Due to the fact that the two agencies belong to the WPP group of companies, there is a possibility for single sourcing," Ikea said.

The appointments follows a four-month pitch process, which kicked off in February.

Dominic Grainger, Mediaedge:cia EMEA CEO, said: "This win reflects our strengths in integrating our unrivalled worldwide coverage, buying power and expertise with in-depth, on-the-ground local market knowledge.

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