McCann Worldgroup Wins Nortel Ad Account

Spending Expected to Increase Dramatically

By Published on .

SAN FRANCISCO (AdAge.com) -- Telecommunications equipment maker Nortel Networks has named McCann Worldgroup, San Francisco, agency for its global advertising account following a review.
Nortel has selected McCann Worldgroup, San Francisco, to handle its global ad account.
Nortel has selected McCann Worldgroup, San Francisco, to handle its global ad account.

The Canadian-based marketer spent $8 million in 2005 in measured media, according to TNS Media Intelligence. Some executives familiar with the situation anticipate spending to increase significantly, perhaps as high as $50 million.

Growth in new markets
A Nortel spokeswoman declined to comment on billings. She said the company is working on three major initiatives: improving margins; rebuilding its reputation with key stakeholders, such as customers and shareholders; and growth in new markets.

Nortel, which provides equipment for WiMax and other fourth-generation wireless networks, faces stiff competition in its rapidly consolidating sector, where competition includes Lucent and Alcatel.

"Our emphasis is on marketing execution and results," said Nortel CMO Lauren Flaherty in a news release issued by McCann.

Partnership with Microsoft
Nortel earlier this year announced a major partnership with Microsoft that is expected to bring billions of additional dollars to Nortel's sales figures, the spokeswoman said. Microsoft is the anchor client of the McCann office. Other global accounts handled by the San Francisco shop include Intel and Hewlett-Packard Co. The global account will be handled out of McCann hubs in London, Hong Kong and Miami. Advertising is expected to begin next year.

Richards Group, Dallas, was the incumbent on the Nortel business. Other competitors for the account were not disclosed.
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