» » Omnicom To Partner With Google For Online Display Ads: WSJ

Omnicom To Partner With Google For Online Display Ads: WSJ

(RTTNews) – Advertising company Omnicom Media Group, part of New York-based Omnicom Group Inc. (OMC), and Google Inc. (GOOG) are expected to announce Thursday an online display advertising partnership, reported the Wall Street Journal.

Displays ads, both words and images, are the ones that generally appear alongside content on Web pages. According to WSJ, the market for the industry could be as lucrative as the $11.3 billion search-ad market.

The internet search giant would help its new partner, whose client list includes PepsiCo Inc. and Anheuser-Busch InBev NV, among others, to tap advertisement exchange in return for advertisement buying, the newspaper stated. Google is seeking to bolster this area as it tries to expand its revenue beyond search ads.

The WSJ report stated that under the deal, Omnicom is expected to spend hundreds of millions of dollars to buy display ads for its clients through Google over the next two years. In return, Google will work with Omnicom to build a global “trading desk” that allows purchase of display ads more easily on Google’s ad exchange, an auction-like system that matches ad buyers and sellers to advertising space across large groups of websites.

The deal entails provision of analytics services to Omnicom by Google to help gauge the performance of latter’s display ads.

In May, Yahoo! Inc. (YHOO), in its revenue outlook, stated that a key revenue driver would be its core display advertising business, which is expected to grow between 13% and 16% annually between 2010 and 2013. Search revenue is projected to increase 3%-6% during the period.

Google, which is slated to report second-quarter financial performance after the bell today, booked advertising revenues of $6.48 billion in the first quarter of 2010.

OMC finished Wednesday’s trade at $35.78, on the NYSE.

GOOG closed Wednesday’s trade at $491.34, on the Nasdaq.

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