The two-year deal will lock in ad rates and
inventory access for Omnicom agencies and will also give Omnicom
a "first look" at new ad units and opportunities being developed
by the microblogging site.
The deal is expected to drive better pricing and targeting, said
Jonathan Schaaf, president of U.S. Digital Investment for
Omnicom Media Group.
"Twitter's been a major advertising partner for our clients in
the past...(Omnicom) wanted to form a closer business
relationship with Twitter that extends beyond just media
Twitter confirmed the deal but declined to comment further.
Wall Street Journal reported the deal first. (http://link.reuters.com/xyj69v)
"The news reflects positive business momentum for Twitter and
the fact that Twitter can sustain its revenue growth
independently of growth in numbers of users given Twitter's
uniqueness as a communications medium for marketers," Pivotal
Research Group analyst Brian Wieser wrote in a note.
Twitter bought MoPub in September for $350 million in stock.
Omnicom's Schaaf said he expected mobile advertising to become a
larger portion of overall advertising.
"The average consumer spends a quarter of their daily screen
time with their mobile device and it's only about 10 percent of
the total marketing dollars, so I'd expect that to level off."
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by
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