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Welcome to the Digital Marketing Inner Circle

This community attracts the best minds in the digital marketing industry. The aim of the 'Digital Marketing Inner Circle' is to discuss events, trends and technologies impacting our industry as well as provide a platform for sharing news and personal commentary for information related to online marketing, search, affiliate and social media marketing.

Is the Google & OMG tie Up Good for Clients? PDF Print E-mail
Written by Matt McDougall   
Saturday, 17 July 2010 11:14

It was interesting to read about the Google display advertising agreement with Omnicom Media Group (OMG) this week. Basically Google will assist OMG in building a “trading desk” to facilitate ad buying through the DoubleClick Ad Exchange.

 

This is not really different to what  OMG was doing for its clients anyway... just now OMD will funnel millions of dollars through Google over the next two years using their 'trading desk' rather than the OMD Ad Exchange. Also I expect there will be some additional benefits to OMD I expect through access to Search and Analytics expertise.

But in this deal, who is the winner? The Client? OMD or Google?

Call me cynical,  I predict we see a whole of lot of bias in the OMD media planning and spending plans because of this deal. And when there are decisions being taken because of commercial benefits to the Agency over the client then you have to say this is not the most ideal situation. Of course it is easy taking the high road in this situation and only looking at this issue in isolation to the other general media planning approaches taken in Agency land.

 

On the other hand, many of the media Agency's are already leveraging publisher inventories that they have on hand to flight new campaigns and this inventory maybe taken over buying new ad units... simple ecomonics and efficencies. The point being is that the Agency's are already making commercial decisions in the media planning and buying process either because of economics, relationships or efficiencies.

 

So with OMD using the Google trading desk for display  purchase we should see an increase in the number of site used (as they may well be done on a Channel buy rather than at site level) for a campaign.  Also, I wonder if the folks at Ad China are worried at how this is playing out and how it might impact their display arbitarge business? I think unlikely that anything will happen in the short term as most 4A's ring fence China as a much too hard place to Globalise processes .... but this may well be different. The Agencies in China are finding it tough still even with business growing, many the Agency CEO is still trying to find ways to lower costs and raise profits.... So I ask you..... Is the future for 4A's a supersized media arbitarige platform dominated by Google where ads can be brought, served and measured? Are we seeing the start of ad domination from text to display (and wait for the in-video ad platform to launch) by Google?

 

Let me know what you think? Pop a comment below....

 

 

 

 


Matt McDougall Written on Saturday, 17 July 2010 11:14 by Matt McDougall

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