Twitter Inc (TWTR), Omnicom Group Inc. (OMC) sign $230 million mobile ad deal
Twitter Inc (NYSE:TWTR) and Omnicom Group Inc. (NYSE:OMC) has announced a mobile-focused deal that is worth $230 million over the next two years. Omnicom’s programmatic ad buying unit Accuen will be integrated with Twitter’s ad exchange MoPub. Twitter acquired MoPub for $350 million in September. Twitter will be able to lock in ad rates and inventory access for Omnicom agencies as part of the deal. It will also give Omnicom a “first look” at new ad units and opportunities that are being developed by Twitter.
“This is the first holding company agreement we’ve done on the mobile ad exchange side,” stated Twitter’s president of global revenue, Adam Bain, adding, “It’s great for us because we’ll now have high-quality advertisers coming through the exchange.”
Twitter made similar partnerships with other holding companies in the past two years. For example, Twitter signed a deal with Starcom MediaVest Group last April.
Currently, ads that are purchased programmatically from Twitter show up on third party websites in the MoPub network, but Twitter plans to let marketers buy ads on its own website soon. It is possible that Omnicom will become the first to do so.
Each of the deals are considered different, depending on what the agency wants from Twitter. The Omnicom deal is different because it focuses on the technology aspect of how ads will be delivered.