Irvine-based Toshiba America Information Systems Inc. has put its advertising account up for review with plans for a bicoastal search for a new shop, according to sources familiar with the account.
The review ends a three-year relationship with digital ad shop Wunderman Southern California, also in Irvine.
Toshiba declined to put a billings value on the account. Estimates indicate $6 million in 2009 spending, up nearly a third from the year prior, according to Neilson Co.
The laptop computer unit of Japan’s Toshiba Corp. has been growing its marketing to include print, TV, movie-theater spots and heavy online advertising.
“We’re seeing a lot of momentum,” Ron Smith, vice president of marketing at Toshiba’s digital products division, said earlier this year. “We decided it was time to get a bigger brand message out.”
Wunderman, part of Britain’s WPP PLC, landed the Toshiba account in 2007 and declined to participate in the review.
“Toshiba’s laptop unit has opted to end their relationship with us,” said Tiffany Leslie, spokeswoman for the Irvine shop. “We truly enjoyed working on the business and wish them continued success.”
Toshiba launched a branding campaign called “Breakthrough” last year, the laptop maker’s first to include TV spots, theater spots and a push into lifestyle magazines in nearly a decade.
A consolidation of Toshiba’s operations in the U.S. might have prompted the pending change in its agency lineup. The account review comes on the heels of the consolidation of the company’s TV and laptops units into a digital product division created in July. The consolidation saw the Irvine laptop unit join operations with Wayne, N.J.-based Toshiba America Consumer Product LLC, which makes TVs, Blu-ray players and other consumer electronics.
Seattle-based Waggener Edstrom Worldwide is believed to have lost its share of Toshiba’s TV advertising account after only a year. Waggener Edstrom’s New York-based Consumer Market Practice led the account, partnering with consumer subsidiary Maloney & Fox of New York.
Wunderman’s loss of the Toshiba account stirred some rumors of the Irvine office’s possible closure, but executives said no such scenario is shaping up.
“Some speculated that the loss would cause office ruin of some sort, but we continue to represent some of California’s biggest brands,” Wunderman’s Leslie said.
The Irvine shop does work for Irvine-based Autobytel Inc., Rosemead-based Edison International’s Southern California Edison Co. and San Francisco’s Blue Shield of California Life & Health Insurance Co., among others.
Wunderman has seen other changes in recent months. The agency restructured its Irvine office in March, sending the accounts of sister agency and co-tenant Young & Rubicam Brands Inc. to a San Francisco office. Various accounts handled by Wunderman shifted from San Francisco to Irvine at the same time.
Wunderman also made an office move from the Irvine Spectrum to 2010 Main St. in Irvine, near John Wayne Airport.
Digital, Branding Shops Combine
Irvine-based digital ad shop Ignite Health has consolidated operations with sister agency Y Brand of New York to form a healthcare-focused shop. The newly formed operation remains under the ownership of Somerset, N.J.-based healthcare ad holding firm Inventive Health Inc.
The move comes on the heels of continued consolidation among clients looking to use one agency for all of their advertising, according to Matt Brown, president of Ignite Health.
Vince Parry, president of Y Brand, will take on the additional role of chief branding officer for Ignite Health. He also will serve on the Ignite executive leadership team.
Y Brand is expected to move operations and workers into Ignite’s New York office in the coming months. Several Y Brand workers also are slated to make the shift to join the newly combined company’s Irvine operations.
Ignite and Y Brand have a long history of collaboration on projects as agencies under the Inventive Health umbrella.
“We’re in the process of identifying candidates to make the move to Irvine,” said Brown.
The addition of staffers from New York would continue a trend that has seen Ignite on a growth spurt recently, going from 80 people to 140 in the past two years.
“We have been growing at a pretty amazing clip thanks to our clients and specialization in healthcare and digital,” Brown said. “We’ve seen high double-digit growth, which is unusual for a downturn.”
As part of its growth, the ad shop is planning to move into former Wunderman of-fices in the Irvine Spectrum this December.
“We’re doubling our square footage in Orange County and moving from three overcrowded buildings into a space that will hold plenty of new people for future growth,” Brown said.
Water, Beer, Skateboards
Huntington Beach-based marketing firm MKM has landed three clients.
The shop will handle Huntington Beach-based eco-friendly home goods maker Takeya USA Inc.’s new line of glass water bottles. MKM also has launched marketing for Dana Point’s Taste of Brews festival slated for 2011. The beer festival plans to open next summer with a surf-themed event and an Oktoberfest in the fall. MKM is handling the public relations and promotions for the startup festival.
The shop also will be running promotions and marketing for Los Angeles-based Street League Inc.’s new professional sports tour hosted by skateboarder Rob Dyrdek.
