Google Inc (GOOG) signs deal with ad company Magna Global
Google Inc (NASDAQ:GOOG) has signed an “upfront” deal with one of the largest advertising buyers, Magna Global. Magna Global, a division of Interpublic Group, oversees $37 billion in annual ad spending and has committed around $100 million of client marketing money to Google properties.
These ad dollars will be spread across YouTube and Google’s display ad network and mobile platform. This deal lasts a year and will be renewed if there is transaction. This is the first time that Magna Global has made a deal with Google. Google signed similar deals last year with ad buyers like MediaVest, DigitasLBi, and Razorfish.
Magna will get access to Google’s ad inventory and data. The company also will be able to work more closely on client marketing campaigns with Google. Magna Global’s president Chris Williams said that his company probably spends more with Google than any other partner so this upfront deal cements the relationship that would let the two companies work more closely together on larger projects.
Magna Global made the upfront commitment for a few reasons. One of the reasons is to improve access to some of Google’s ad inventory and pointed out that YouTube pricing has become more attractive. Magna Global also wanted to work more closely on creating content that works well on YouTube and other Google properties. Magna Global is also expecting to get more data from Google to target ads more precisely and to automate the buying process.
An example of a project that Google and Magna Global is working on is Project Elevate. Magna Global’s client Johnson & Johnson is creating interesting video content on YouTube as part of this project.