LOS ANGELES -- Northrop Grumman Corp. has awarded its $7 million-plus creative and media account to McCann-Erickson in Los Angeles, a Northrop representative confirmed.
The aerospace and defense company had worked with BBDO West in Los Angeles for the past eight years before putting its account up for review several months ago [Adweek, June 4]. However, the agency last week dropped out of the review following the announcement that its Chicago office was one of three finalists for the $70 million Boeing account [Adweek, August 13]. Other finalists for Northrop included Ogilvy & Mather in New York and E. James White Communications in Herndon, Va., sources said.
"They are a company that clearly understands the new environment for defense," said McCann-Erickson general manager Ian McGregor, citing the company's acquisition this year of non-nuclear ship-builder Litton Industries. He added that the shop has a "forty year heritage in the aerospace industry." McCann's Los Angeles office had been the agency for McDonnell Douglas in the mid-1990s before it was acquired by Boeing, and held Boeing's global account from 1999-2000, after which it was awarded to FCB Seattle.
Billings for Northrop through BBDO were estimated at $3-4 million. The budget moving forward has increased due to Northrop's acquisition of Litton Industries, a company representative said. That acquisition concluded in June and ultimately led to the review.