Home furnishings giant IKEA, which began a media agency review in March, has completed the global phase of the process and consolidated its roster of media agencies to two holding companies—GroupM and Dentsu Aegis Network.
Previously, the Leiden, Netherlands-based client had split media chores among five holding companies.
The firm spends an estimated $435 million annually on ads worldwide.
In the next phase of the review, regional IKEA units will select a media partner from among the GroupM or Dentsu Aegis brands. Both holding companies already work with IKEA in many markets.
Barring conflicts and new business priorities, it’s possible that in some regions a six-way pitch for the IKEA business could occur between all of the GroupM (Mindshare, MEC, Maxus, MediaCom) and Dentsu Aegis agencies (Carat, Vizeum).
Most markets are expected to complete their selection by the end of the year. Ongoing pitches are being held in the UK and US, where GroupM’s MEC is the incumbent.
Ikea issued this 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."