In a sign that underscores the growing demand for advertising on digital platforms, Google has signed a multi-million cross-media advertising deal with Publicis Groupe, one of the ‘Big Four’ advertising companies in the world. The contract was signed through MediaVest, a subsidiary of Publicis.
MediaVest will spend millions of dollars on YouTube, mobile network and web advertising for Google. For its part, Google will be involved in measuring the effectiveness of these advertisements and develop digital campaigns as well. The advertising agency said that the partnership reflected the strong case for advertising in the digital space, and pointed out the high returns associated with investments of such kind and scale.
The deal is a coming together of two heavyweights. Google needs no introduction. Publicis is a 87-year old advertising agency that recently made its ambitious plan to merge with another ‘Big Four’ ad agency – Omnicom – public. The deal would further solidify its industry leadership and clout.
Publicis’s move comes in the wake of reports that YouTube may launch a subscription-based music streaming service with free and premium options. The free option presents opportunities for major advertisers to reach out to consumers.
Google is also one of WPP’s high-profile clients. The advertising giant’s ad spend for Google stood at $2 billion this quarter. Soon, Google is expected to surpass News Corp as WPP’s largest beneficiary.
Videos have already been touted as the ‘next big thing’ in content marketing. An increasing number of businesses are turning to videos to create memorable visual representations of their brand. The tremendous potential for reaching and engaging a massive audience on digital platforms such as videos cannot be denied. The exponential increase in web traffic to online videos on popular sites like YouTube has been duly noted by advertising agencies. While the migration comes at the cost of traditional mediums such as television, industry observers expect the trend to continue unabated in the future.