The 2014 Digital Content Newfronts are still a long ways away, but a pair of Publicis Groupe agencies have already committed nine figures to Google’s advertising stock. Razorfish and DigitasLBi have bought $100 million of display advertising inventory across platforms like YouTube and Google Plus.
The deal is a landmark one for both of the agencies, as it represents a larger commitment to online video advertising than ever before. DigitasLBi and Razorfish chairman Rishad Tobaccowala explained that the size of the deal was important because it allowed the two agencies to broker a better deal. “You need scale to get lower prices, and you need scale to get attention,” he said.
As the agency behind the original Digital Content Newfronts, DigitasLBi has long made a big commitment to online video advertising. With its newly-purchased inventory in tow, it hopes to create campaigns similar to the Dove Real Beauty video, according to Google exec Torrance Boone. “As digital agencies, DigitasLBi and Razorfish are each uniquely positioned to help brands and businesses pair creativity and technology to create groundbreaking campaigns that are digital at the core,” he said.
This deal is bigger than just the agencies involved. Business Insider speculates that the format of the deal (in which huge amounts of inventory are purchase before campaigns are devised) is more reminiscent of TV. This allows buyers to see the web space as more analogous to TV, thus encouraging them to spend more money there. Should other agencies follow DigitasLBi and Razorfish’s lead, the size of online video advertising budgets will continue to trend far upward.