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Google strikes deal with Omnicom to boost display ads

Google strikes deal with Omnicom to boost display ads

Google has teamed up with Omnicom Media Group for online display advertising, an area the internet giant is attempting to expand in as it looks for revenue streams outside of its traditional search ads.

Under the deal, which will be announced later on today, Omnicom is expected to spend hundreds of millions of dollars to buy display ads for its clients through Google over the next two years, according to a report in the Wall Street Journal.

In return, Google will work with Omnicom to build a global "trading desk" that allows the company to buy display ads more easily on Google's ad exchange.

Omnicom was apparently already buying ads on Google's exchange using its own technology system.

The deal also will allow Omnicom to concentrate on its areas of expertise, such as client services, creativity and analytics, rather than technology.

As part of the deal, Google, which will also reveal its second-quarter earnings today, will provide analytics services to Omnicom to help it understand how its display ads are performing.

Google is seeking to revive the market for displays ads as the medium comes under increasing pressure as marketers question the effectiveness of the ads – only a fraction of the consumers who visit web pages actually click on the displays.

To make display ads more attractive, Google and Yahoo! (among others) have developed new ad-exchange systems that give marketers the ability to target ads to niche audiences. They are now trying to entice demand by entering partnerships with ad companies and websites.

The partnership will not stop Google from working with other ad companies or Omnicom from working with other tech companies.

For example, Publicis Groupe digital-advertising unit Vivaki also works with Google to develop online ad-buying technologies.

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