The company started the review in March through its German headquarters. It is not known what other agencies were involved in the process but the move ends one of advertising’s most enduring partnerships.
Lola, the Madrid-based Lowe & Partners agency, will be responsible for Mattel’s European advertising and digital account. It includes the Barbie and Hot Wheels brands.
Miguel Simoes, the chief executive of Lola, said: "This is a huge opportunity and a chance for us to help [Mattel] get a powerful position in the negotiations between child and parent – it's a process that involves a lot of emotion. Mattel is really in the international entertainment business, so this is fertile creative territory."