The CEOs of Publicis Groupe and Google said in a press conference this week they would jointly develop an approach to digital advertising that was both creative and technologically savvy. Neither Maurice Levy of Publicis nor Eric Schmidt of Google, speaking at Publicis’ HQ, would put a value on the partnership, according to a NY Times story, but they asserted the collaboration gave them a “first-mover advantage” in combining the programming knowledge of Google with the creativity of ad agencies.
The resulting tools and business intelligence would not necessarily be proprietary to the two companies but could help propel the growth of digital advertising, they said.
In the US Google already uses its technology to sell ads across TV, newspapers and Google Radio for selling radio ads.
“It is possible that what emerges could drive the development of ‘open source advertising,’ Schmidt said, if the tools were made widely available.
"We are excited about the progress that’s been made and about the initiatives already under way," the companies said in an internal memo to Publicis staffers. "Google, for example, has established a dedicated global account team for Publicis Groupe…[and] has been given access to various early-stage advertising technologies. Publicis Groupe is sharing with Google its wealth of agency experience know-how…The two of us share a vision that new and highly innovative advertising technologies – offering fast, reliable operations, economies of scale and significantly more precise metrics – will dramatically improve efficiency and efficacy of ad campaigns and media planning.”
RBR observation: Publicis Groupe owns Zenith Optimedia and Starcom Mediavest. A lot of money is spent through these agencies in traditional media as well as digital. Perhaps those broadcasters who have already signed up with Google Radio may get a leg up on buys after this partnership gets established. Streaming audio may see some of this as well. It’s all about improving efficiency, targeting and tracking response to ads. If Google’s technology helps gain insight and improves metrics, then Publicis will gain a leg up with clients.