Century 21 Drops Its L.A. Ad Agency : Real estate: McCann-Erickson loses the $30-million account to a Minneapolis firm. The move is a blow to the local industry.


In one of the biggest advertising deals this year, Century 21 Real Estate Corp. on Tuesday awarded its $30-million national account to Minneapolis-Advertising, dropping incumbent McCann-Erickson/Los Angeles.

The decision to split with the agency, which had the account for seven years, is a blow to the local advertising market because it pulls a trophy account and major piece of business out of Southern California.

For the record:
12:00 AM, Jun. 14, 1990 For The Record
Los Angeles Times Thursday June 14, 1990 Home Edition Business Part D Page 2 Column 1 Financial Desk 1 inches; 32 words Type of Material: Correction
Ad agency--The advertising agency that won the Century 21 Real Estate Corp. ad account was Minneapolis-based Campbell-Mithun-Esty Advertising. Because of a typesetting error, it was given incorrectly in a story Wednesday.

Irvine-based Century 21’s switch, which takes effect in 60 days, also underscores the tenuous relationships between ad agencies and real estate firms. As the real estate market has softened, several large real estate companies have switched agencies in recent months.

“Advertising is a high-visibility component of any business, and it often translates to problems (for the ad agency) when business takes a downturn,” said Rich Edler, managing director of McCann-Erickson/L.A.


Coldwell Banker Residential Real Estate and BBDO/Los Angeles parted company in January after four years. Coldwell last month gave its $15-million national account to the Los Angeles office of Grey Advertising. And in April, Coldwell Banker Commercial switched its $5-million account to the Los Angeles office of Della Femina, McNamee WCRS after J. Walter Thompson/Los Angeles resigned from the account.

Century 21, the nation’s largest franchiser of real estate brokerage services, put its account up for grabs in March. The company said more than 100 agencies initially responded to its call for proposals and that seven agencies were invited to make creative presentations--basically, to outline their proposed ad campaigns--at its headquarters last week.

McCann-Erickson/L.A. was one of the contenders, as was the firm’s New York office. Two other Southern California firms, Chiat/Day/Mojo of Venice and D’Arcy Masius Benton & Bowles/L.A., also were finalists.

A Century 21 spokesman said Tuesday that the company was not unhappy with McCann-Erickson’s work but had put the account up for review in March because it wanted to see ideas offered by other firms.


But Bruce Oseland, Century 21’s senior vice president for marketing, said in March that when an account is put up for review “there generally is some level of concern about a particular aspect of the advertising.” He did not elaborate.

McCann Erickson’s Edler said loss of the account would result in a staff reduction, but he could not say how many jobs would be lost. The firm employs 120 in the Los Angeles office.

“From time to time,” Edler said, “clients and agencies separate, and sometimes it is difficult to understand exactly why.