McCann Worldgroup has been given an extension on its current ad contract with the U.S. Army, the military branch confirmed Friday (Nov. 6).
The Army had intended to conduct a formal review for the contract this year but the search has been delayed, and probably won’t be completed until late next year or early 2017.
In its announcement last Friday, the Army said it was extending McCann’s contract to September 2017 with an additional budget of $377 million.
The Army spends about $200 million a year on marketing and advertising services, according to the review notice it posted last year. Annual revenue from the assignment is estimated at $15 million.
McCann Worldgroup has held the Army ad contract since 2005 and successfully defended in 2011. The agency has been invited to defend again in the upcoming review.
Before last week’s extension, the current contract was valued at $960 million and included a one-year term and four one-year options to renew.
The scope of work includes strategy, advertising, media planning and buying, and event marketing, PR and more, and is focused on recruitment.