McCann Worldgroup, lead agency on the U.S. Army account since 2005, has retained the contract, giving Nick Brien a needed present for his first-year anniversary as CEO of Interpublic, Worldgroup’s owner.
The review was yet another challenge for Brien, as McCann clients including Verizon and General Motors have shifted business to agency competitors.
Worldgroup will provide general advertising, public affairs support and direct marketing to support Army personnel acquisition and retention programs. Recruitment challenges are the war in Afghanistan, an improved economy and fewer influencers (parents, teachers, coaches, etc.) familiar with the military.
The Army intends to keep its “Army strong” positioning and tagline.
The negotiated price of the contract, which begins April 7, is estimated to be between $184-200 million annually, depending on the number of projects awarded by the Army. (The contract extends for one year, with four one-year option periods over a five-year period.)
Estimated annual revenue on the account is $15-20 million.
Worldgroup employs some 300 staffers on the Army account from 11 companies, including McCann Erickson, MRM Worldwide, UM (Universal McCann), NAS Recruitment Communications, Momentum, Weber Shandwick and Casanova Pendrill.
The account went into play last August, with the other finalists being WPP agencies Grey and Y&R, and McCann’s Interpublic sibling Draftfcb.