Google Inks $100 Million ‘Upfront’ Deal with Magna Global
Many people might be questioning the value-proposition of the Digital Content Newfronts, but that doesn’t mean advertisers aren’t willing to allocate spend to digital advertising — especially if its a major player in the space.
YouTube’s parent company, Google, has reportedly inked a $100 million “upfront” deal with Magna Global, a unit of Interpublic Group. Per USA Today, the deal covers digital advertising for various Google properties, including YouTube, as well as the search giant’s online display network and mobile platforms.
To be fair, it seems like a drop-in-the-bucket for Magna Global, which oversees $37 billion in annual ad spend. But $100 million is not nothing, and while the commitment is being made to Google, it appears YouTube was a major factor in securing the partnership.
Torrence Boone, managing director of agency business development at Google, tells USA Today that Google and YouTube plan to unveil “a new class of scarce, premium ad inventory” during YouTube’s Newfront/Brandcast event this spring. “Each player will partner with us to access that premium inventory and work with content creators in new and innovative ways,” he said.
“Advertisers are going to need homepage takeovers on YouTube for key launches, and we need to be able to deliver that to them,” Magna Global president Williams added. This deal with Google allows Magna Global to solidify an existing partnership, and have access to such premium inventory when needed.
The upfront commitment runs for one year with the option to renew if everyone is happy. Google and Magna Global say they will also work together to create custom content for YouTube and other Google platforms.
This isn’t Google’s first major upfront deal in the past year. The company signed a similar agreement with Publicis Groupe agencies DigitasLBi and Razorfish in November 2013.
Google is also not the only Newfront “founding father” to secure an upfront commitment in advance of the Newfronts. Microsoft recently inked a deal with Starcom MediaVest Group to offer the agency access to video inventory across the company’s platforms — from Xbox to mobile, to Skype.Tags: Agencies, digitaslbi, google, Magna Global, newfronts, publicis groupe, Razorfish, video advertisinga, youtube