Even though the official NewFronts don’t begin until April, Google has made a major score in its efforts to win TV dollars over from big brands by making the process of creating, buying and monitoring ads similar to the way these things are done in TV biz and TV upfronts. IPG’s Magna Global oversees $37 billion in annual ad spend, committed about $100 million of client dollars to Google properties, including YouTube, its online display ad network and mobile platform.
The deal lasts a year and may be renewed if the partnership goes well, noted a USA Today story. “This is the first time Magna has struck such an agreement with Google. For its part, Google signed similar deals last year with other agency ad buyers MediaVest and Publicis Groupe’s DigitasLBi and Razorfish.”
In return for Magna’s financial commitment, the agency gets access to Google ad inventory and data, along with the chance to work more closely on client marketing campaigns with Google.
“There’s the notion of being able to tap into scarcity around inventory, which is critical and underpins the upfront model in TV,” Torrence Boone, managing director of agency business development for Google in the Americas told the paper. “That model is porting over to digital.”
In the context of this year’s NewFronts event, which kicks off in New York City in late April, Google will unveil a new class of scarce, premium ad inventory, Boone noted.
“Each player will partner with us to access that premium inventory and work with content creators in new and innovative ways,” he added.
Boone cited the example of Project Elevate, which is helping a Magna Global client, health care giant Johnson & Johnson, create interesting video content on YouTube.
“This upfront investment provides the air cover for these more strategic projects,” Boone said.
