In the latest of several advertising related announcements from Facebook, the social giant has signed a major deal with the advertising holding company, Publicis Group. In a deal reported to be worth $500 Million over several years, Facebook is looking to show their flexibility and effectiveness with major brands and other ad networks.
According to Laura Desmond, CEO of Starcom MediaVest Group, the Publicis agency that was responsible for managing this agreement, the partnership is “focused on co-creation of product around data, video and images, including core Facebook and Instagram.”
Facebook data will be integrated into the Publicis’ media platform, allowing them to create custom ads more quickly and effectively. In addition, they will have access to Facebook engineers and analysts to help them develop better tools and media for an improved advertising experience. Facebook will also offer custom ad units on Instagram, potentially giving Publicis a competitive edge.
Facebook’s VP of global marketing solutions, Carolyn Everson, said of the deal, “This is the first time we have all of the different elements that will allow clients to reach a significant scale of 100 million people a day in the US and [specific] audiences within the 100 million the client wants to reach.”
What impact this deal could potentially have on the overall Facebook advertisement inventory is unknown. Despite the $500 million price tag, however, it does not immediately look like it will cause the price of Facebook ads to go up in the short term.
