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CEA On Board for U.S. Navy

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Taking a lesson from its close-but-no-cigar finish in the U.S. Army review, Campbell-Ewald Advertising attempted to deliver a more cost-conscious package in its bid for the U.S. Navy business, in part by cutting out one of its minority agency partnerships.

The agency's strategy proved a winning one, as the Navy's $40 million account was awarded to CEA last week after a six-month review.

The Navy, headquartered in Arlington, Va., said the contract has a potential maximum value of $330 million over five years. The incentive-based pact covers a two-month transitional period followed by five, one-year options.

For the Army, eventually won by Leo Burnett, CEA partnered with RK Hispanica Direct in New York. This time, it enlisted only fellow Interpublic Group of Companies shops Accentmarketing, Coral Gables, Fla.,which will handle Hispanic efforts, and The Chisholm-Mingo Group, New York, which will handle advertising geared toward African Americans, according to Jim Palmer, an executive vice president at Campbell-Ewald.

Transition meetings are planned for early October and first work could break before the end of the year, Palmer said. Internet will play a huge part, since the target market—people in their late teens and early 20s—spend several hours a day online.

Bates USA, Y&R Advertising and Rapp Collins Worldwide, all in New York, and Martin/ Williams, Minneapolis, were finalists in the review. Lead incumbent BBDO Worldwide, New York, did not defend.

Campbell-Ewald employees were greeted by a two-story American flag and the strains of "Anchors Away" when they came to work last Thursday.