NEW YORK (AdAge.com) -- Palm is severing ties with its agency, Modernista, and is in the early stages of talks with other agencies for its future ad needs, according to executives familiar with the matter.
Boston-based independent agency Modernista has handled advertising for Palm since the technology company launched its Pre smartphone last summer and the cheaper Pixi device later in the year. Palm reported poor sales in March and has since outlined a marketing strategy more focused on point-of-sale than brand advertising.
Both Palm and Modernista declined comment on the moves, but according to one executive familiar with the situation, the marketer has begun speaking to shops about its forthcoming marketing needs.
This is yet another major setback for Modernista, which lost its biggest account, General Motors' Cadillac brand, late last year. Since the carmaker shifted its account to Publicis-backed BBH, New York, Modernista has been forced to cut staff, and in December shuttered its three-year old Amsterdam office.
Other accounts at the shop include the National Park Foundation and TIAA-CREF.