Media Plan for IKEA

An analysis of IKEAs target audience and selection of media vehicles in which to advertise.
Prepared By Kara Andersen 4/9/2014

Document Overview
Target Audience Summary1 Client Description ....................................................................................................................... 1 Client Overview ........................................................................................................................ 1 Client Offerings .................................................................................................................... 4 Target Audience .......................................................................................................................... 5 Psychographic Elements ......................................................................................................... 6 Demographic Elements ............................................................................................................ 7 Geographic Choices..................................8 Media Plan...10 Media Type Priorities.10 Specific Media Choices..11 Media Plan Schedule..21 Justification of Money Spent.22 Spreadsheets..26

Target Audience Bullet List Summary o Targets Psychographic Summary Enjoys home decorating Enjoys DIY projects Reads home dcor magazines

o Targets Demographic Summary Between 35-64 Married female Homeowner Median income of $41,000

o Targets Geographic Summary Metro Priority No. 1: New York City Metro Priority No. 2: Philadelphia Metro Priority No. 3: Dallas/Fort Worth

o Client Description Company Overview: IKEA is a 71-year-old Swedish company with stores around the world. Ingvar Kampard founded the company in 1943 at the age of 17 and initially sold small household items such as wallets, picture frames, pens, and nylon stockings. He developed the name IKEA from his initials (I.K.) and the initials of the farm and village he grew up on (E.A.). In the beginning he made sales calls himself, but by 1945 the business had grown so much that he was unable to continue this. This was the first year that the Kampard placed advertisements in the local 1

newspaper. By 1948, IKEA was selling furniture made by people in surrounding villages. This was well received and the product line continued to expand. By the early 1950s, IKEA had opened a showroom in lmhult, Sweden that showcased their designs and the quality of their products. Their goal in building a showroom was to be able to show consumers that their products were both inexpensive and made in a quality way, and to allow customers to compare IKEA products to a competitors products. In 1956, IKEAs concept of consumer-assembled furniture came to fruition after an IKEA co-worker took the legs off of a table so that it would fit into a vehicle and avoid being damaged during transit. The first IKEA store opened in lmhult, Sweden in 1958, and at the time it was the largest furniture display in all of Scandinavia. The first IKEA store outside of Sweden was opened in Norway in 1963 and continued to expand into Denmark and Switzerland over the following decade. (IKEA) Fifty-five years after the first IKEA store opened, Fiscal-Year 2013 saw 345 stores located in 42 countries around the world. In 2013 alone, 9 new stores were opened on 3 continents; North America, Europe, and Asia. The store distribution worldwide breaks down in this way:

Area Europe North America Asia Middle East Australia Central America U.S. Area Northeast Southwest South Midwest Northwest Store Count 12 10 8 6 2

Store Count 248 50 30 9 7 1

14% 9%

Store Distribution
>1% 3% 2%

Europe North America Asia

72%

Middle East Australia Central America

Europe continues to boast the highest number of stores. However, IKEA is making strides to open more stores in a variety of countries. Fiscal-Year 2013 alone saw the opening of first-ever stores in Qatar and Lithuania. IKEA Vilnius, the Lithuanian location, was the first IKEA store within the Baltic States (Estonia, Latvia, and Lithuania). IKEA has 38 franchise locations in the United States, spread

across 21 different states. California has the most, with 8 stores, and most of the stores in the United States are located on either coast. (Inter IKEA Systems) IKEAs annual revenue in the United States is $2.9 billion, which accounts for approximately 10% of IKEAs worldwide annual revenue. (Statistics Brain) IKEA began as a company that was dedicated to providing a way for people, even with limited means, to purchase quality furniture and accents for their home. (The Economist) Over 9,500 different pieces of home furnishing articles are carried by IKEA, with prices beginning at 29 cents 3

for a dog dish. (Statistics Brain) They are able to offer these lower prices because of three key business strategies. First, they do not focus on having salespeople constantly interacting with the customers at their stores. Instead, they focus on creating clear displays that speak for themselves and allow for a more self-service approach. Second, IKEA does not rely on third party companies to create the furniture in IKEA stores. They design all of their furniture in a way that keeps costs low. Finally, furniture that is sold at an IKEA store is packaged in a flat-pack, which reduces costs because it is easier to ship and store and costs are also reduced because the consumer assembles the product in their own home. (Supply Chain Management) Client Offerings: Each IKEA store carries a wide variety of home furnishings, ranging from beds and bookcases, to full kitchen cabinet sets, to home accents and decorations. Products are divided into the following designations: Living Room, Bedroom, Kitchen & Appliances, Childrens IKEA, Textiles & Rugs, and For Business. Some examples of products offered in each category are as follows: (IKEA-US)

Category Living Room

Product offerings Couches, chairs, end tables, coffee tables, lighting, throw pillows, cushions, curtains, storage units, TV furniture Bed frames, mattresses, lamps, light fixtures, bedding, pillows,

Bedroom dressers, wardrobes, night stands, hangers, hooks 4

Kitchen & Appliances

Cabinets, islands, ovens, cooktops, refrigerators, microwaves, countertops, faucets, sinks, storage, knobs Cribs, bed frames, mattresses, small furniture, storage, toys, lamps,

Childrens IKEA

desks, highchairs, mirrors, tableware Rugs, bedding, linens, curtains, cushions, pillows, curtain rods, fabric,

Textiles & Rugs

blankets, towels, shower curtains, aprons Desks, storage cabinets, chairs, lamps, tables, bookcases, stands, lighting, filing cabinets.

For Business

Along with the wide array of products that IKEA sells in their stores, the store also offers services to customers such as home delivery of products, assembly of products and installation of kitchen cabinets, design software, and home furnishing advice. Many of these services come at a cost. Home delivery begins at $59 while home delivery and installation costs $79 and up. Advice about home design and furnishing is free, along with kitchen planning advice. (IKEA Services)

My Target Audience Choice: Home Designers and Furnishers o Introduction: Home designers are a varied group of people. Tastes and trends vary from classic to modern, vintage to country, and cottage to industrial. Oftentimes the location of a persons house, 5

along with their own personal style, can dictate the overall appearance and aesthetic that they focus on when decorating. People from rural areas tend to decorate in a more traditional style while those from larger, more metropolitan areas lean toward styles that would be considered more modern or contemporary As a group, home decorators became more active in 2013, when compared to previous years. Many people who would normally have purchased home furnishings were not making these purchases because of the economy and their own personal budget constraints. In 2013, there began to be an increase in the number of people searching for home furnishings and decorations for their home, in part because the economy has been on an upswing and people are more open to making more purchases of non-necessity goods for their home. (Scott) Psychographic Elements of Home Decorators: As a whole, consumers who enjoy furnishing their home also enjoy doing do-it-yourself projects. These projects could range from sewing new curtains, making throw pillows for the living room, or refinishing floors or even rooms. Do-it-yourselfers appreciate saving money by doing things themselves instead of having to pay for the same service. They also enjoy the creativity involved with each project. (Bosari) Home decorators are also interested in following trends by reading magazines related to home furnishings, decorating, and renovations. Magazines allow home decorators to see what options are around for room design, and they can also see color and item trends from around the country 6

or just in the particular style they are interested in, depending on the magazines to which they subscribe. (Marketing to Home Decorators) Home decorators are also using subtle colors in their decorating, such as blues and grays. This allows them the ability to coordinate many items of different colors and styles. (Today) Demographic Elements of Home Decorators: Single females account for approximately 38 % of home decorators, but the majority of home decorators are married (55%). The average age of a person interested in home decorating is 57, however, interest in home decorating peaks in those who are between the ages of35 and 64. Over 75% of people who are interested in home decorating are homeowners. The median household income of home decorators is $41,000, but about 23% of home decorators have an income of less than $20,000 and 20.5% have an income of $50,000-$74,999. Seventynine percent of people who are interested in home decorating have an average household income that is less than $74,999. (SRDS) How Target Aligns with IKEAs offerings: IKEA offers an array of products for any room of the home. The products offered would most appeal to a person who is interested in the Scandinavian style. IKEA also sells products that are reasonably priced and would fit within the target audiences budget. The lower prices and option to avoid assembly cost by putting things together yourself allows the IKEA customer to save money but not sacrifice style.

o Geographic Choice Explanation I chose to focus my advertising on the metropolitan areas of Philadelphia, New York, and Dallas. All three of these areas have high concentrations of people who are interested in home decorating, and Philadelphia and New York both have multiple stores within the same metropolitan area, which allows advertisers to maximize the impact of the ads that they run because they are able to reach people within the publication radius who, while not a resident of the target city, still receive the intended messages and can act on them. Metro Area priority No. 1: New York City, New York New York boasts the highest number of people interested in home decorating, according to the Standard Rate and Data Service. Over 2,876,000 people had this interest in 2007 alone, accounting for just over 38% of the population. IKEA boasts four stores in what could be considered the New York metropolitan area. There are two stores on Long Island, in Brooklyn and Hicksville, which are 30 miles apart. There are also two stores across the river in New Jersey, in Elizabeth and Paramus, which are 20 and 24 miles from the Brooklyn location, respectively. Many consumers in this area that are reading media from New York will have an IKEA store that is located somewhere near them, so IKEA can benefit from the home decorators around the New York metro area who are reading the advertisements and going to one of the four IKEA stores in the area. Metro Area Priority No. 2: Philadelphia, Pennsylvania 8

According to the Standard Rate and Data Service, Philadelphia boasts over 1,124,000 who have an interest in home decorating. This number accounts for 38% of the population. There are two stores in the greater Philadelphia area, one in Philadelphia and one in Conshohocken, 20 miles away. Placing advertisements in various media in the area will not only reach those in Philadelphia who are interested in home decorating, but also those in the metro area surrounding the city. IKEA can benefit from ads here because they will be seen by people who live in and near Philadelphia, and with 2 stores within 20 miles of each other, there is more of a chance that the people who see the ads will also have an IKEA within a reasonable distance. Metro Area Priority No. 3: Dallas, Texas Although Dallas does not boast nearly the number of consumers who are interested in house decorating as Philadelphia or New York, the 929,709 people who are interested in home dcor does account for nearly 40% of the population of the Dallas-Fort Worth metropolitan area. IKEA has one store in this area, and it is located on the north side of the metro area, in Frisco. Its location is ideal because it allows people from the city to easily travel to IKEA, and is also accessible by people in the suburbs and nearby towns. Consumers will likely see media from Dallas, even if they live near the city, and the advertising could draw them to IKEA, because it is located conveniently. 9

IKEA Media Plan Introduction: The following is a media plan for IKEA. It consists of 25 different media vehicles within six different types of media. The media vehicles break down in the following way; four magazines, three newspapers, three radio stations, three television programs, eleven web sites, and Google AdWords. A total of $1,999,880 was spent on this campaign, with an emphasis on purchasing website and magazine advertisements. The campaign runs April through July, with most advertisements running in a bursting or flighting pattern throughout. The highest media priority was websites, followed by magazines. Media Type Priorities: My top media priority is websites. Prior research into the interests of home decorators showed that they enjoy doing research online about home design. By placing advertisements on the eleven selected websites, they will be reaching consumers who are interested in modern design, interior decorating, and do-it-yourself projects, all characteristics of members of IKEAs target audience. Placing advertisements on websites allows for the potential for them to be viewed multiple times, if a consumer frequents the site. Unlike radio and television placements, which operate by inserting advertisements that are heard or seen once, until they are played again, and rely on the fact that the consumer heard or saw what was played, placing advertisements on websites allows for a better chance that the advertisement will be seen because it is on the page for as long as the consumer is viewing the material on the page. My secondary media choice was magazines because members of IKEAs target audience are interested in home dcor, modern style, and do-it-yourself projects, and there are specific magazines that focus on those interests. The selected 10

magazines each focus on at least one interest of IKEAs target audience, which means that the consumer will be in ideal place, while reading the magazine, to correlate their interests and the offerings of IKEA as they relate to each other. Specific Media Choices: Magazine Choices: Metropolitan Home: I chose to advertise in Metropolitan Home magazine because it focuses on the latest trends in decorating, as well as home design and home furnishings. This magazine is also has a high number of subscribers on the East Coast, with a high circulation concentration in New England and the Mid-Atlantic States, which would allow it to reach consumers in the New York metropolitan area who are close to the IKEA stores nearby. Dwell: Dwell is a good choice to advertise in because it focuses on people who are interested in open, adaptable characteristics often found in modern design. IKEAs design style is very sleek and modern, and would be of interest to people reading this magazine. The circulation in New England and the Mid-Atlantic is high, so it has the potential to reach many people in the New York metro area who are near an IKEA store. Dallas Home and Heritage- Dallas Home and Heritage is a publication that reaches Dallas, Fort Worth, and nearby suburbs. Even though it has a smaller readership and higher CPM than any other magazine, it is a worthwhile purchase because it directly reaches those persons in the Dallas/Fort Worth metropolitan area that have a vested interest in home design. Dallas Home and Heritage is dedicated to 11

providing home design inspiration that is current and modern, which fits the target audience. Better Homes and Gardens (New York, New Jersey, Pennsylvania,
Texas):

Advertising in Better Homes and Gardens is an effective choice

because it is a magazine that is dedicated to helping people make their lives better through . . . home design and decorating among other topics (SRDS). This aligns with the audience that IKEA targets because their target audience is interested in interior decorating and stylish design. Because Better Homes and Gardens is such a widely published magazine, it was important to focus the advertisements to the areas that were relevant to IKEAs target audience. Only advertising in the magazines that are distributed in Pennsylvania, Texas, New Jersey, and New York state directly reach the top target metro areas. Even though the CPM is the highest of any magazine, it is a worthwhile purchase because it is very pointed and directed toward the exact metropolitan areas that IKEA wants to target. The ad is a 1/3 page ad that runs on the inside of the magazine to reach readers as they are thumbing through. Newspaper Choices: Fort Worth Star-Telegram- Advertising in the Star-Telegram is beneficial to IKEA because it will effectively reach the audience that would be interested in IKEAs offerings and lives in the Dallas/Fort Worth metro area. Placing ads in the Sunday art section will reach the best audience, because compared to the other special sections that the Star-Telegram offers, the Arts section would be most appealing to the target audience that 12

IKEA is trying to reach. Running ads the first two weeks of each month of the four-month advertising cycle will allow consumers to see the ads for two consecutive weeks, not realize that they arent seeing it for two weeks, and then see it again during the first two weeks of the next month. Norristown Times Herald-Although advertising in the Norristown Times Herald does not seem like a wise choice, it will actually reach a very distinct audience. Norristown is only three miles from the IKEA store in Conshohocken, Pa. This paper will reach consumers in the suburbs who are very close to the IKEA store there. Advertising in the Welcome Home Real Estate section will target consumers very directly because most of IKEAs target audience is new home buyers. An ad here will reach those consumers who are thinking about buying and furnishing a new house. The 12 advertisements will be spread between 4 months. They will run for three consecutive Saturdays, not run for one week, and then run again for three Saturdays. New York Times (NY Regional Edition) - Placing advertisements in the regional edition of the New York Times is the best way to reach the audience that is in the area of any of four IKEA stores within the New York metropolitan area. Running the ad in the House and Home section, which runs on Thursdays, will reach home decorators more directly. Those interested in home decorating are most likely to be looking in the section labeled House and Home. The ad will run on the first Thursday of each month. Radio Choices: 13

WHTZ-FM (New York)- I chose to run ads on this Pop Contemporary Hits radio station because some brief research revealed that the age range of the people who are interesting in IKEAs offerings are more likely to listen to this type of radio. WHTZ also has the highest ratings of any Pop Contemporary Hits station in the New York area. I chose to run the ad 10 times each Friday evening of the campaign. I chose to run the ads on Friday evenings because people are out and about and when they hear the ad, they may be more likely to have an opportunity to go to an IKEA store over the weekend. WIOQ-FM (Philadelphia)-WIOQ is a good choice for radio advertisements in the Philadelphia metro area because their format aligns with the interests of the target audience. They also have the highest ratings of any of the Pop Contemporary Hits stations in the area. Advertising on Friday nights throughout the campaign will reach those people who turn on the radio at their Friday night parties and get-togethers. It would also allow people to have a chance to go to an IKEA store over the weekend. KHKS-FM (Dallas) - Choosing to advertise on KHKS is a good idea because it will reach the consumers in the Dallas metro area who are the target for the items and style that IKEA has. Placing advertisements in Friday evening spots will allow them to reach consumers who tune in to the station on Friday nights while relaxing or enjoying a party. Television Choices: House Hunters Renovation: House Hunters Renovation is an excellent television choice for advertisements because it is a show 14

dedicated to home buyers who look for a home that they ultimately purchase, renovate and update. This aligns with IKEAs target because they have an interest in home renovation and are typically newer home buyers. I chose to put more insertions in Philadelphia because, of the three metro priorities, it is the one with the most potential for home buyers. The New York metropolitan area does not have the available homes for purchase. Rather, it has many apartments, so I put fewer insertions there and in Dallas. The advertisements will appear during the Prime advance time of the day, which is 5-7 in the Central time zone and 6-8 in the Eastern time zone. This will reach people who are watching television after work or while preparing dinner. Renovation Realities: Advertising during the show Renovation Realities will reach those members of the target audience that have an interest in do-it-yourself projects for the home. The show focuses on the ups and downs of working on projects yourself as well as the struggles that come with do-it-yourself projects. Advertisements would run during the Prime advance day-part, which would those people who are home from work, relaxing and watching television in the evening. I decided on 40 insertions in each of the three cities because whether the target audience lives in apartments or houses, they are still interested in do-it-yourself projects and would watch this show. Sarahs House: The program Sarahs House follows a woman as she renovates an outdated house with a more modern and stylish dcor style. She does the work herself, which is what makes this show appealing 15

to IKEAs target audience because they have an interest in modern style and renovations as well as do-it-yourself projects. I chose to place advertisements in the prime advance day-part because it will reach those members of the target audience that are home in the evening, relaxing and watching television. This show would appeal to target audience members in any of the three metro areas, which is the reason for equal insertions in each city. Website Choices: Design-milk.com- Design-milk.com is a website that is devoted to modern design, and much of their design is centered on sleek, modern, Scandinavian designs, similar to the products offered by IKEA. Their average monthly traffic is about 40,000 unique visitors a month, and even though that is lower than many other websites, design-milk has a devoted following, meaning that their visitors return monthly to investigate new content. This is what makes it a good purchase choice. Realsimple.com/home-organizing: Placing advertisements on the part of the Real Simple magazine devoted to home and organizing will reach people who have an interest in keeping up-to-date on modern trends and design ideas for their house. Some of their top articles include, Living Room Decorating Ideas and 23 Decorating Tricks for your Bedroom. These and other articles will appeal to the target audience because they have an interest in home decorating. IKEA has furniture for many different rooms of a house, so placing advertisements on Real Simples website will reach people, even if each of them is interested in decorating 16

different rooms of their house. With a CPM of only 19 cents, advertising on the Real Simple website is also cost effective, reaching many people at a lower price than most of the other websites on which advertisements are being placed. HGTV.com/decorating: Placing advertisements on the HGTV website is an effective choice because it will reach those people who turn to the website for tip, inspiration, and further ideas from shows that they may have seen on television. The decorating section of the website is devoted not only to home dcor and design, but also to remodeling, which is an activity of interest to the target audience. With a CPM of 8 cents, advertising on the HGTV website is a cost-effective option, and the most affordable of all of the advertising placements on websites, in terms of CPM. Dwell.com: Advertising on the dwell.com site in conjunction with placing advertisements in the Dwell magazine has the potential to reach target audience members multiple times, thus helping to keep the IKEA name fresh in their memory. The Dwell website provides modern design ideas, which align with the target audience. Because dwell.com has a smaller readership than other larger websites, I only chose to place 90,000 advertisements over the course of the three month campaign. BHG.com/remodeling: While the Better Homes and Gardens website has a variety of sections that might appeal to the target audience for IKEA, focusing advertising on the remodeling section will reach those members of the greater target audience that are specifically interested in 17

remodeling their homes. Better Homes and Gardens website does not specifically focus their design section on modern design, which is why it is a better choice to only place advertisements in the remodeling section of the site. They will reach the people they are meant to reach, and who have an interest in IKEAs products. I placed a greater number of advertisements on this site over the course of the campaign because it has a greater viewership than some smaller websites, and it also has an affordable 39 cent CPM. DIYnetwork.com/decorating: Advertisements on the decorating section of the DIY network website will reach those members of the target audience who are either coming to the website because of a show they have seen on television, or because they are looking for do-ityourself decorating ideas. Either of these types of people would be interested in IKEAs offerings, which is what makes this website an excellent choice for advertisements. Members of the target audience are interested in both modern interior design and do-it-yourself projects. Because this website has a higher number of unique visitors each month, running 135,000 advertisements over the course of the campaign will help to reach more of the websites viewers. Thisoldhouse.com: Placing advertisements on the This Old House website will reach those members of the target audience who are interested in remodeling and do-it-yourself projects. A large portion of the website is devoted to projects for the home and do-it-yourself ideas, which fits the interests of IKEAs target audience. Because the advertisements 18

will be placed in a sub-page of the website as opposed to a main page or the front page, only 90,000 advertisements will be run, since the viewership is lower that the larger portions of the site. Freshome.com: Freshome.com is a website that is dedicated to modern designs and especially interior decorating. It features sections about design for many different rooms of a house and also lets readers submit their projects. This aligns with IKEAs target audience because it is known that they have an interest in modern interior design as well as doit-yourself projects. Even though the CPM is higher than most of the other websites, freshome.com is still a cost-effective purchase because it reaches a distinct audience of creative people who do projects for the home and are interested in interior design. Houzz.com: Houzz.com is a unique yet cost-effective choice for advertisement placement. The website is dedicated to helping inspire modern interior design. It lets users search through rooms that others have designed and projects that others have done to gather inspiration for their own projects. IKEAs advertisements would align well with the audience of this site because they would be reaching people who are interested in both interior design and projects for the home. Housebeautiful.com: Housebeautiful.com offers a variety of modern design tips, inspiration, and designer tips. Users of this site would have an interest in modern furniture and design, which would align with IKEAs target audience. IKEAs furnishing options would be of interest to

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consumers who are interested in the advice and inspiration that housebeautiful.com offers. Home-designing.com: Home-designing.com offers home and interior design ideas for a modern style. Their website is devoted to ideas for every room of the house, so IKEAs modern furnishings would appeal to visitors to this site. IKEA offers sleek, modern furniture that aligns with the designs and interiors featured on home-designing.com. Since the website has a smaller viewership than many of the other website choices, I decided to run fewer advertisements during the course of the campaign. Google Keywords: Inexpensive modern furniture: Since IKEAs furniture and dcor is marketed as both inexpensive and modern, it would fit what people who are using these key words would be looking for. Modern furniture design: Displaying advertisements for IKEA when consumers use these key words would be effective because the modern designs that IKEA offers would be of interest to them. Because IKEA offers lower prices that some other modern furniture retailers, consumers could discover IKEAs affordability when compared to other advertisements that might also appear. Modern interior design: IKEA offers furniture that would be of interest to someone who was searching for modern interior design. IKEAs products align with a modern style and because they offer products for all rooms in a house, no matter what room a person was particularly

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interested in applying modern design styles to, IKEAs products would align with what they are looking for. Scandinavian furniture design: Because IKEAs furniture is distinctly Scandinavian; a person who was searching for Scandinavian furniture design would be interested in the furniture selection that IKEA offers. Scandinavian interior design: If someone was interested in decorating their house in a Scandinavian style, IKEAs offerings would align with that consumers interests because their furniture has a distinctly Scandinavian style. Simple modern design: The furniture that IKEA offers features simple lines and basic colors and styles. A person interested in a simple, modern design style would be interested in IKEAs furniture because it would have features that would align with their interest in simplicity and modernity. Media Plan Schedule: The four consecutive months in which I chose to run the IKEA media plan are April, May, June, and July. These four months were chosen because of the seasonal change and the idea that as the weather warms, many people take the opportunity to clean or update their house. This allows for the opportunity to reach people who may have, over the colder months, become tired of their furniture or are looking for a change. Advertisements can be run during this time that emphasize that a person who might want to change or update their furniture could do so with clean, simple, modern furniture from IKEA at a less expensive price than a consumer might find at another retailer. 21

The magazine advertisements run in each magazine four times, once each month of the campaign. The advertisements in the newspapers run at differing times. Advertisements in the Fort Worth Star run once a week for eight weeks; four in April and four in June. In the Norristown Times Herald, the advertisements run once weekly from April to June, with twelve total insertions. Advertisements in the New York Times run once a week for the month of April. This creates a bursting type of newspaper campaign, with heavier advertising presence in the months of April and June. Radio advertisements are scheduled to run during all of the months of the campaign, with a total of 208 insertions on each radio station. This breaks down to 13 insertions each week on each station. Television advertisements are run as follows: Advertisements will appear during each show 10 times each month, except for insertions during the broadcasting of House Hunters Renovation in the New York metropolitan area. There are between 50,000 and 70,000 impressions on internet sites during each month of the campaign. Internet advertisements will run for all four months of the campaign, and the number of impressions is based on the number of unique visitors a site receives each month, and in that regard, their popularity as well. Justification of Money Spent: The budget for IKEAs advertising campaign was $2 million. A total of $1,999,880 was actually spent on this campaign, and the breakdown of spending breaks down in this way:

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IKEA Media Type Spending Analysis

$18,953 $44,008

$305,558 $838,316

Magazines Newspaper Radio Television

$698,443

Internet Google AdWords

$94,601

The most money was spent to purchase magazine advertising space, with $838,316 or approximately 42% of the budget devoted to purchasing advertising space in four magazines. Because advertisements are more costly to advertise in than some other media types, and because magazines are the second most important media type in this campaign, spending this amount on them is beneficial because it allows for the purchase of quality magazines that relate to the target audience and will reach them in effective ways. The second largest amount of money was spent purchasing radio advertising space. Approximately 35% of the budget, or $698,443 was put into the purchase of advertisements in radio. Because radio is also more costly than many other media types, this spending is reasonable and effective for the campaign, even though radio is not one of the highest priorities. The money purchased advertisements on three different radio stations for sixteen consecutive weeks.

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Even though less than 1% of the budget was spent on internet placements, advertising space on eleven different websites was purchased. Because internet is the highest media priority, purchasing advertising space on eleven websites is an effective use of money and will reach more people. Since television, Google AdWords, and newspapers were not high priorities, only 22 % of the budget was devoted to purchases. These were not the most effective ways to reach consumers who would be interested in IKEAs products and services, which is the reason for less spending in each category.

Bibliography
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Statistics Brain. IKEA Statistics. 26 May 2012. 13 February 2014. <http://www.statisticbrain.com/ikeastatistics/>. Supply Chain Management. IKEA's Low Price Strategy. 5 February 2013. 13 February 2014. <http://cmuscm.blogspot.com/2013/02/ikeas-low-price-strategy.html>. The Economist. The Secret of IKEA's Success. 24 February 2011. 10 February 2014. <http://www.economist.com/node/18229400>. Today, Home Accents. Home Accents Today Consumer Views Survey 2013. 2013. 13 February 2014. <http://furnituretodaystore.stores.yahoo.net/consviews.html>. U.S. Census Bureau. Homeownership Rates by Age and Household . 2012. 13 February 2014. <https://www.census.gov/compendia/statab/2012/tables/12s0992.pdf>.

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