updated 08:22 pm EDT, Tue May 27, 2014
Agreement integrates Accuen into MoPub for further ad reach, buying
Social media company Twitter has made a move to strengthen its ad division with a $240 million agreement with Omnicom Media Group. The two-year deal will see Omnicom's programmatic ad-buying unit, Accuen, integrated with Twitter's MoPub ad exchange. Twitter had purchased MoPub in September for $350 million in a move to strengthen its advertising arm.
Omnicom issued a statement to the Wall Street Journal confirming the agreement. "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."
Part of the terms of the deal give Omnicom a "first look" at new ad units and other opportunities through Twitter's platform. Locked ad rates and inventory access for Omnicom agencies are also included in the deal. For Twitter, the agreement allows the company to reach out to consumers outside of its built-in user base.
"This is the first holding company agreement we've done on the mobile ad exchange side," said Twitter's President of Global Revenue Adam Bain. "It's great for us because we'll now have high-quality advertisers coming through the exchange."
Twitter has made other ad deals in the past, including one worth $200 million with Starcom MediaVest Group. That deal gave Starcom access to advertising slots and other data for a two-year period. However, not all of these deals are similar in what each company gets. Bain added that each type of deal is different, depending on what the agencies wants out of Twitter.
According to a statement given by Jonathan Schaff, president of US digital investment for Omnicom to Reuters, the deal will have more of an impact than just the reach of ads, as it is expected to be a better driver for pricing as well. He also says that the company wanted to expand their relationship with Twitter beyond media buying because of the company's partnership with clients.