Google has signed a multi-million cross-media advertising deal with Publicis Groupe, one of the largest advertising agencies in the world, through its subsidiary MediaVest, a company that specializes in media planning and buying for clients like Coca-Cola, according to The Financial Times.
The deal reportedly seals a commitment to spend millions of dollars over the next year on YouTube, web and mobile network advertising. Many reports speculate that television will be the most impacted over time as big advertisers begin to look at online video as a viable channel to reach consumers.
“For years, the digital world has been asking for the dollars and laying out a case for why,” said Brian Terkelsen, chief executive (CEO) of MediaVest. “This is a moment in time where we are beginning to see a new level of transparency, a new level of partnership and a new appreciation of the size of the prize that is available.”
Publicis, founded in 1926 and headquartered in France, is a multi-billion company dubbed one of the “Big Four” agency companies in the world. This year, it announced plans to merge with Omnicom, also a Big Four agency and multi-billion dollar company. The deal would secure the group’s position as one of the largest of its kind in the world.
Currently, Publicis owns subsidiary companies in digital and media such as Rosetta, Rokkan and Razorfish, to name a few.
But this isn’t the first time Google has struck a deal with one of the Big Four. Advertising giant WPP based in the UK said back in April that Google was the beneficiary of $2 billion in spend for the quarter, and WPP CEO Martin Sorrell said Google would soon overtake WPP’s largest beneficiary, News Corp, which owns companies in television broadcast.
The agreement comes hot on the heels of reports that YouTube may be launching a music video service with premium and free options. The free streaming option would no doubt be a prime medium for some of those big advertisers to reach consumers.