Omnicom, Twitter sign $230 mln
mobile ad deal
Omnicom Group Incis (OMC.N) advertising solutions department signed a package worth $230 million with Twitter Inc (TWTR.N) that’ll combine Omnicomis automatic ad purchasing product Accuen with Twitter’s mobile ad exchange MoPub.
Both-year package can secure in stock entry and advertising prices for Omnicom companies and can also provide Omnicom a “first-look” at possibilities and new ad products being produced by the microblogging site.
The offer is likely to generate targeting and greater pricing, said Jonathan Schaaf, president of U.S. Digital Expense for Omnicom Media Group.
“Twitter’s been a significant marketing partner for the customers previously…(Omnicom) desired to form a deeper business model with Twitter that extends beyond simply media buying.”
The offer was established by twitter but dropped to comment.
Wall Street Journal reported the offer first. (link.reuters.com/xyj69v)
“the headlines demonstrates good business energy for the fact as well as Twitter that Twitter may maintain its revenue growth alone of development in amounts of customers provided the individuality of Twitter like a communications method for entrepreneurs,” Crucial Research Group analyst Brian Wieser wrote in an email.
MoPub was purchased by twitter for $350 million in stock in September.
Omnicom’s Schaaf said he predicted mobile advertising to be always a greater part of general marketing.
“the typical consumer uses a fraction of the everyday display time using their portable unit and it is no more than ten percent of the sum total advertising dollars, so I’d assume that to level off.”