Seeking Alpha

Facebook strikes ad deal with Publicis reportedly worth $500M

Publicis (PUBGY), the world's #3 ad holding company, has struck a multi-year deal with Facebook (FB +2.1%) that involves a "co-creation of [ad] product around data, video and images, including core Facebook and Instagram."

AdAge reports the deal is worth $500M, and notes it's "easily the largest yet between an agency holding company and a tech company." Publicis' clients (through its holding companies) include major brands such as Coca-Cola, P&G, and Verizon.

Facebook ad VP Carolyn Everson states the deal 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 U.S. and [specific] audiences within the 100 million." It was only two weeks ago that Facebook rolled out advanced audience data tools for advertisers.

Instagram announced its first major ad agency deal in March - a $100M tie-up with former Publicis merger partner Omnicom.

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Comments (13)
  • artnoon
    , contributor
    Comments (25) | Send Message
    I am a trader and publisher. I have a long term position in facebook and am looking for the 70's by year's end.
    19 May 2014, 04:41 PM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
    Read it again..
    Multi-year deal..
    With #3 ad holding company..
    Worth only $0.5B..


    FB already spent 38 times that amount just on Whatsapp.
    19 May 2014, 04:52 PM Reply Like
  • beautidoc
    , contributor
    Comments (145) | Send Message
    8 times, $4 billion in cash
    19 May 2014, 05:05 PM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
    the other $15 Billion just evaporated, or never existed, except in imaginary FB share value, right doc? :)
    20 May 2014, 12:51 AM Reply Like
  • joeycard
    , contributor
    Comments (341) | Send Message
    Good maybe I can starting seeing ADs on my FB App and maybe maybe buy something !! But no way this FB stock is worth $150B ....maybe a tenth
    19 May 2014, 04:43 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2071) | Send Message
    not suprised, I like it, I see FB as a biggie one day. I mean, REAL biggie.
    Capt. Brian
    The Lost Navigator
    19 May 2014, 04:44 PM Reply Like
  • Glenway Fripp
    , contributor
    Comments (1261) | Send Message
    Hate to bug in with irrelevant news buts,as far as I am concerned, this news is HUGE and is way under reported! I consider it big enough that it gave me "insiders edge" today!



    Reason for my bias can be found in my blog:



    We shall see if this goes mainstream in the news tomorrow. Meanwhile: I say it is a strong buy signal!
    19 May 2014, 04:48 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (1638) | Send Message
    Google dropped the ball on this one. Half the battle is exposure in the news. And this is a international ad company.
    19 May 2014, 06:55 PM Reply Like
  • gwynfryn
    , contributor
    Comments (5547) | Send Message
    It's certainly good publicity for Publicis!
    20 May 2014, 12:09 PM Reply Like
    , contributor
    Comments (4094) | Send Message
    The FB juggernaut and the Zuck just keep ignoring the skeptics and moving forward with increased business in many sectors.


    All positive for top & bottom line growth.


    What we are experiencing , imo, is an anomaly of an internet company becoming a highly effective and needed tech company leaving all doubters, both individual and corporate, in its wake .
    19 May 2014, 07:37 PM Reply Like
  • bullodg74
    , contributor
    Comments (9) | Send Message
    I work with a number of ad agency CEOs and they all rave about the upside in Facebook advertising...including its mobile network and its online/offline testing. Facebook will have a blowout next two quarters and will approach $100 by end of year if market stays if yet to come.
    19 May 2014, 08:40 PM Reply Like
  • bjavier11
    , contributor
    Comments (35) | Send Message
    Coke & P&G can take advantage of Fb international coverage. 500m s just a start. When ads succeed, prices go up tremendously, just like a 30 second commercial on Super Bowls. Fb has more dau than any Super Bowl. Fb long
    19 May 2014, 11:02 PM Reply Like
  • Kaiserdog76
    , contributor
    Comments (166) | Send Message
    Prepare for $65 by early June. FB technically is setting up too rip higher. IMO
    20 May 2014, 02:30 AM Reply Like
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