Modern Comfort Meets Modern Ad Strategies: IKEA’s AI Story

We recently sat down with IKEA and their North American agency partner Carat to explore how they're using AI-powered tools to create better advertising experiences and drive better results.

They shared how AI is helping them plan, activate, and optimize campaigns across markets with greater speed, efficiency, and clarity—strengthening every stage of their media strategy. Check out the video below or keep reading to learn more about their path to success and get helpful insights to elevate your own campaigns.

The goal: Expand reach while simplifying the path to purchase

For decades, IKEA has helped people create comfortable spaces with affordable products, bringing minimalist design into everyday life. As the company grew across the U.S., they spotted some exciting opportunities to boost their online sales and show up more often in search results. But their campaigns and budgets were scattered across different accounts, making it tough to see the big picture and keep track of spending.

The solution: Organize every product category under one digital roof

IKEA and Carat teamed up with Microsoft Advertising to bring their campaigns together and make every ad dollar work harder.

Using Performance Max, they streamlined new customer outreach and returning customer campaigns into one approach, matched gorgeous product photos with targeted audience signals based on what people are interested in and searching for, and rolled out four more campaigns across their best-selling product lines.

By letting AI simplify complexity and support smarter decision-making, the team could spend more time on strategy and creativity while improving performance.

The results: Stronger returns and elevated interiors

The numbers really tell the story:

• Return on ad spend jumped by 140%
• Conversion rates went up by 311%
• Total conversions climbed by 215%

By combining thoughtful planning with great creative work, the team brought the same simplicity and purpose that make IKEA's products special to their digital marketing.

How you can achieve similar success

Bring your campaigns together with AI-powered Performance Max so you can manage different product lines in one place and let automated bidding help you get the most from your budget.

Use what you know about your customers' interests and shopping habits to reach people when they're ready to buy, and always keep your images and creative fresh so your audience stays engaged.

The best results happen when you combine smart planning with simple systems that work harder for you. Chat with a Microsoft Advertising expert today to see how you can maximize your results with a centralized, AI-powered campaign.

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