On Tuesday, Omnicom Media Group announced the $230 million mobile focused deal with Twitter that will last for the next two years.
Omnicom will combine its programmatic ad buying unit Accuen with Twitter’s ad exchange MoPub. The acquisition worth $350million based on September’s report. Aside from the closing of ad rates and inventory access for Omnicom agencies, the deal will also provide the hosting company a “first look” at new ad units and increasing number of opportunities for the social network. The companies added that the element of “research” is higly important for these deals.
Adam Bain, Twitter’s president of global revenue said that “this is the first holding company agreement we’ve done on the mobile ad exchange side.” He added that “it’s great for us because we’ll now have high-quality advertisers coming through the exchange.”
For the past two years, Twitter has been through different partnerships with other holding companies. Last April, Twitter signed one with Publicis-owned Starcome Mediavest group and based on report it cost them $200 million over two years.
According to Mr. Bain, each transaction is unique and serve different purpose. It always depend on what the agency wants from the social network.“Each one is unique. They’re rooted in the unique points of view these agencies bring,” he said, adding, “This one is unique because it focuses on the tech part of how ads will be delivered.”
By that time, ads acquisition from Twitter only reveal its third-party connection among different sites like its MoPud network but the social network also plans to allow marketers buy ads on its own website soon.
“We haven’t made an announcement about opening up Twitter to programmatic buys, but it’s natural that we’ll do it,” Mr. Bain said. Based on the current connection of Twitter with Omnicom, it’s possible the agency group will be the first to do so.
“Our agreement with Twitter reflects what we look for in a media partnership – the opportunity to deliver first-to-market benefits that impact all aspects of all Omnicom clients’ digital investments, from content to placement to measurement,” a statement from Omnicom said.
There are other social networks that also joined this type of deal. Facebook even signed a multi-year Publicis for “hundreds of millions” of dollars last week. The pair said that arrangement like this is really to integrate closely.Last week Facebook signed a multi-year deal with Publicis worth “hundreds of millions” of dollars. That arrangement is designed to more closely integrate the two companies’ data, the pair said.