Coldwell Unit Gives Grey Its Ad Business

The soft real estate market has caused a Southland scramble among real estate firms looking for new ad agencies.

On Wednesday, yet another change was made when Coldwell Banker Residential Real Estate handed its $15-million annual ad business to the Los Angeles office of Grey Advertising. BBDO/Los Angeles created ads for the Mission Viejo-based Coldwell Banker until January when it parted with the firm.

But that was just the beginning of the ongoing real estate shuffle.

Coldwell Banker’s Commercial Group switched agencies earlier this month, handing its $5-million business to the Los Angeles office of Della Femina, McNamee WCRS after J. Walter Thompson/Los Angeles resigned it. In mid-March, Century 21 put its $30-million ad business up for review. Current agency McCann-Erickson/Los Angeles is still among the contenders for the business.

As the real estate market continues to deteriorate nationally, ad executives speculate that other real estate firms may eventually shift accounts too.

“When the business environment gets soft--and I’m not just talking about real estate--people tend to look for new agencies,” said Jack Roth, president of the Los Angeles agency Admarketing.

“It’s a dog-eat-dog world out there when it comes to real estate,” said Sherri Sprecher, national director of advertising for Coldwell Banker. “Grey gives us our first opportunity to establish a marketing partnership.” Beyond that, said Lane Barnett, director of marketing at Coldwell Banker, the aim is to “transcend good solid (creativity) and focus on increasing our business.”

Coldwell Banker ranks as one of the nation’s largest real estate firms, with nearly 1,900 residential real estate offices in North America. The agency declined a request to release sales figures.

For Grey Advertising’s Los Angeles office, the win represents its first chance to create and place ads for a major real estate client. “This is not a shoot-from-the-hip reaction to a soft market,” said Miles J. Turpin, chairman of the western division of Grey Advertising. “It was careful, strategic planning by the client.”

Turpin, whose Los Angeles office now posts annual billings of about $208 million, said his office will probably hire about a dozen new employees to help with the business.

“In a tough market, the guy with the best products and services will finish first,” said Turpin. “Coldwell Banker is well-positioned to do just that.”