TBWA and Toymaker Leapfrog Split

Agency Was Company's Creative Shop for More Than Two Years

By Published on .

NEW YORK (AdAge.com) -- Toymaker Leapfrog Enterprises and its creative agency, TBWA/Chiat/Day, Playa Del Rey, Calif., are parting ways after just over two years.

Leapfrog sells electronic learning toys in 35 countries.
Leapfrog sells electronic learning toys in 35 countries.
The reasons for the split -- and whether the toymaker is on the hunt for a new creative shop -- weren't immediately clear. A spokeswoman for the marketer didn't return calls, while a TBWA spokesman would say only, "We've mutually agreed to part ways."

The Omnicom Group agency and Emeryville, Calif.-based marketer have worked together since August 2006.

Leapfrog, which sells its electronic learning toys in 35 countries, spent an estimated $25 million on marketing last year. Advertising expenses in the third quarter of 2008 increased 14% to $15 million to support the launch of new products. The company posted a profit of $24 million last quarter, an improvement over the same period last year, when Leapfrog posted a $10 million loss.

Despite the battered economy and sagging retail sector, Leapfrog remains optimistic: "We have a strong portfolio of products, clean inventories, a healthy balance sheet and plenty of liquidity to weather the economic storm," Chief Financial Officer Bill Chiasson said last month.

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