The Home Depot and its agency Initiative Media struck cross-platform deals last week with two of the biggest media companies, Disney and Viacom. The one with Disney was the bigger. Sources estimate its value at $100 million, although none of the parties were commenting on the financial arrangements last week.
Here are the details:
- In the largest single ad buy it has ever done, Home Depot agreed to spend approximately $100 million over three years on three Disney broadcast and cable networks: ABC, Disney and Lifetime. Disney has agreed to develop a home-decorating program for the hardware/home- improvement chain to advertise in; The Disney Paint Program will be launched next January. As part of the deal, Disney agreed to purchase Home Depot products for an unspecified number of its business units and is developing a line of paints to be sold in Home Depot stores.
"This is just the start of an expanding long-term relationship," said Bob Nardelli, chairman, president/CEO of Home Depot. Before Home Depot, Nardelli was an executive at NBC parent General Electric and a finalist for the CEO spot there but lost out to Jeff Immelt.
Said Disney President Bob Iger, "Disney's, ESPN's and ABC's brand strength and broad scope provides unparalleled reach and opportunity for The Home Depot."
- The Viacom deal involved a big tie-in with last week's Country Music Awards on CBS, where the first "Home Depot Humanitarian Award" was presented. The award recognizes a commitment to serving others. Viacom cable channel CMT, Infinity country-music stations, CBS TV stations and Westwood One radio network are among Viacom outlets involved. Sources say the overall value of the deal is smaller than Disney's, but no word on how much smaller.