Century 21 Putting National Account Back Out for Bids

IRVINE — Century 21 Real Estate Corp., the nation’s largest franchiser of real estate brokerages, said Wednesday that it is putting its $30-million annual national advertising program out to bid.

The process places incumbent national ad agency McCann-Erickson in Los Angeles on notice that it must come up with some new and different approaches to promoting the huge real estate franchise operator or be replaced.

Competition for the contract is expected to be fierce: $30 million a year in billings make it a sizable one for most Southern California ad agencies to tackle. It is one of the largest advertising budgets of any company based in Orange County.

Richard J. Loughlin, president and chief executive of Century 21, said in a statement that the firm--which has 7,200 franchises and had $65 billion in worldwide sales last year, its seventh consecutive year of record sales--is “satisfied with the performance” of McCann-Erickson.

But Century 21 has had only two domestic ad agencies in its 19-year history, he said, and officials believe it “prudent after seven years” with McCann-Erickson to investigate alternatives.

Officials of McCann-Erickson could not be reached for comment.

Bruce Oseland, senior vice president for marketing and advertising at Century 21, said the company, which is owned by Metropolitan Life Insurance Co., is in a rapidly changing industry that is undergoing a considerable amount of consolidation.

Other major players have entered the market, Oseland said, including Sears, Roebuck & Co.--owner of Costa Mesa-based Coldwell Banker Residential Real Estate--and Prudential Life Insurance Co. of American, owner of Newport Beach-based Prudential Real Estate Affiliates.

With competition like that, he said, “we need to take a look at what we are doing (with corporate advertising) to see if it is the best work and the work we want to do for the future.”

Coldwell Banker and BBDO Los Angeles severed their relationship last month after a four-year marriage. Coldwell, the nation’s No. 2 residential realty organization with about 11% of the market, was spending $10 million a year on domestic ad campaigns through BBDO.

Oseland declined to comment directly about the work McCann-Erickson has been doing for Century 21 but said that when an advertising account is put up for review “there generally is some level of concern about a particular aspect of the advertising, be it on the media side or in research or in creative.”

He said the review is expected to last 60 to 90 days and that Century 21 will make a final decision from among four to six agencies, including McCann-Erickson.

He said that no agencies other than McCann-Erickson have been identified yet as participants in the review.

Several real estate industry observers said that with Century 21 coming off a record year and with residential resale activity still healthy throughout the country, there is no indication that the company is aiming to dump McCann-Erickson because its ads haven’t been working.

In its most recent campaign for Century 21, unveiled just a few weeks ago, the agency created a spot featuring California Angels’ pitcher Bert Blyleven discussing how often he has been traded in his career--five times--and how the last thing he needs is constant worry about selling his home.

As Blyleven turns away from the camera and walks back to the clubhouse, Angels Manager Doug Rader appears and says he must talk to him--the implication being that the pitcher is about to be traded again. Blyleven then reaches into his locker and pulls out a Century 21 “For Sale” sign.

“They’ve done some good work for us in the past” Oseland said. “We are not doing this to change for change’s sake, but we do want to explore other approaches.”