Target parts ways with Mother after 20 years

Target has ended its longtime relationship with Mother, Ad Age has learned. The Minneapolis-based retailer was one of Mother’s largest clients and the partnership dated back to 2004. Ad Age Best Places to Work 2024 50 companies doing a standout job See the full list here “Target evolves our roster of external partners on an ongoing basis based on changing business and brand needs. At this time, we’ve decided to end our partnership with Mother. We’re grateful for all that Target and Mother have accomplished throughout our partnership,” a Target spokesperson said in a statement. The spokesperson did not comment on whether there were any other changes to its agency roster. Target also works with independent creative agency Mythology, which did not return a request for comment. Mother has laid off a “small number” of employees as a result of the account loss, according to one person familiar with the situation. The agency has about 500 employees across its offices in London, New York, Los Angeles and Shanghai. The agency declined to comment. Check out the latest retail news here Target spent $1.5 billion on U.S. advertising for the year ended January 2023, which was in line with what the retailer spent on marketing in 2022, according to Ad Age’s Datacenter. Become an All Access subscriber Get access to exclusive resources including Leading National Advertisers, World’s Largest Advertisers, Agency Report, Agency Review Tracker and TV Pricing Report. Click here In recent years Mother has talked about its strategy to limit its new business pipeline and instead focus on growing existing client relationships. Its revenue increased to $70 million in 2021 from $50 million in 2020, after focusing on its Target, Postmates, Sonic Drive-In and Dave & Buster’s accounts. Last November, Sonic retained Mother as its lead creative agency following a review. Target has delivered a mixed bag of results in recent months. The retailer’s third-quarter comparable store sales declined 4.9% over the year-earlier period, it previously reported. Revenue also dropped 4.2% to $25.4 billion for the quarter, but earnings rose 36.3% to $971 million, leading to a stock price surge. The company has said shoppers are gravitating toward low prices and value during a time of continued economic uncertainty. Target’s most recent holiday campaign, created with Mother, pushed a message of value and promotions. Mother has worked with Target on its holiday ads since at least 2019; before that, Interpublic Group of Cos.-owned Deutsch L.A. handled some of those campaigns. Of course, shoppers are also gravitating toward trendy items, including Stanley’s colorful tumblers. The popular drinkware brand recently collaborated with Target on a “Galentine’s Day” exclusive collection that sparked an in-store buying frenzy that immediately sold out. Mother also launched Target’s brand platform, “What We Value Most Shouldn’t Cost More,” in 2021, aimed at attracting new customers by highlighting products that resonated with them. In 2017, the agency was behind campaigns to aggressively promote the retailer’s private-label brands. Contributing: Adrianne Pasquarelli

Target parts ways with Mother after 20 years

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