A package deal, literallyStarcom MediaVest brokers record-setting P&G-Viacom pact 6/03/2001 08:00:00 PM Eastern
Back in March at the Four A's media conference in New Orleans, Starcom MediaVest's Kevin Malloy predicted that at least half of the ad agency's U.S. media billings would be tied to integrated marketing deals in five years.
What he knew and the rest of us didn't was that the company's U.S. arm, MediaVest USA, was working on a record-breaking cross-platform deal with Procter & Gamble and Viacom.
That deal was signed last week, with P&G committing $300 million in ad spending on 12 Viacom outlets over the next year.
The P&G-Viacom deal is the biggest single cross-platform ad-spending agreement yet. And that's six times bigger than the previous record deal put together by Viacom: a $50 million commitment from Fidelity, the financial investment company.
"This unprecedented deal not only takes our long and fruitful relationship with P&G to the next level; it also puts us at the forefront of a new way of doing business," said Viacom President Mel Karmazin. Indeed, agency executives predict that at least 40% of U.S. billings will be tied to cross-media deals in five years.
The package-goods maker will buy spots on 12 Viacom outlets: CBS-TV, VH1, MTV, MTV2, Nickelodeon, CMT, BET, UPN, TV Land, Comedy Central, and syndicated product from Paramount and King World.
Marketing objectives include pumping up the People's Choice Awards and
and minorities, especially during Black History month.
The deal, separate from buys that P&G will make in the upfront market, will give Viacom a greater share of P&G's almost $1 billion in TV ad spending, officials on both sides confirmed.
The agreement was two years in the making after an initial conversation between Karmazin and P&G's Global Marketing Officer Robert Wehling. Viacom Plus, the cross-platform sales unit, coordinated the sale for the media conglomerate.