Google has struck up an advertising deal withe Magna Global, an arm of Interpublic Group. Magna Global currently spends about $37 billion in advertising and is reportedly commiting $100 million to Google’s ad efforts. The deal is said to be valid for one year and if all goes as planned and to each companies liking, it’s likely the deal would be renewed. Magna’s commitment with dollars opens up Google’s ad inventory and data to them, a big score for them. Google is trying to streamline the online ad buying process and model it towards the way the television industry operates it.
“There’s the notion of being able to tap into scarcity around inventory, which is critical and underpins the upfront model in TV,” said Torrence Boone, managing director of agency business development for Google in the Americas. “That model is porting over to digital.”
“Advertisers are going to need home page takeovers on YouTube for key launches, and we need to be able to deliver that to them,” Williams said. “An ad hoc relationship with a media owner can restrict your chances of securing inventory when you need it. It certainly improves your chances when you’re in this closer type of relationship.”
This deal certainly reminds us how Google has gotten where it is today. This is a company that lives and breathes data collection. The advertising potential with all that data is immense and Google is certainly trying to tap into as much of it as it can.This deal just goes to show that there is still meat left on the bone, sometimes you have to turn the bone over to get to it. What do you guys think? What does the future look like for online advertising? Do you think Google is ahead of the curve? Let us know in the comments below or on Google+, Twitter and Facebook!
Source: USA Today