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Internet search leader Google revealed an ongoing partnership with Paris-based global advertising giant Publicis Groupe SA begun over a year ago for the purpose of improving advertising using the search firm's technology, chief executives from the two companies disclosed Tuesday at an informal press meeting in Paris. Publicis chairman and CEO Maurice Levy and his Google counterpart Eric Schmidt said the companies would temporarily exchange hundreds of employees and collaborate in other ways in order to use new technologies for expanding the quickly-growing digital advertising market, which is expected to see spending climb towards the $50 billion mark during 2008, a 22 percent increase from last year according to research company eMarketer. Neither wished to provide details of the partnership at present, however they did say it is not an exclusive collaboration and issued a brief statement. Paris Meeting Details Schmidt and Levy said they have formed the industry's first team of its kind aimed at using Google's programming knowledge and the creativity Publicis carries with it to develop improved platforms and services. "We are sharing our information to help Google develop the right platforms and Google is sharing technology to help us develop the best services for our clients," Levy said in a recent Wall Street Journal article. The results of the partnership could help drive the online advertising industry as a whole by providing non-proprietary tools and shared technical frameworks, the companies said. "“It is possible that what emerges could drive the development of ‘open source advertising,’ " Schmidt said in a recent New York Times article. Levy, who has generally embraced online advertising, said the partnership could help Publicis and other advertising agencies better gauge the impact their ads have online. "The world of advertising has to change. That is what we are building for tomorrow. The partnership with Google is not about creating one product. It is about creating a concept that will work across our whole company," Levy said in a recent London Times article. The booming online advertising market, which extends to areas such as video games, vastly removed from traditional media, is one companies like Publicis want to enter, and Levy sees Google as being able to help guide them toward that end. "We are telling the market we are being very serious about digital advertising," Levy told Reuters, adding that by partnering with Google his firm could "grow the business of our clients through better use of the Internet, sending the right message at the right time." Fourth Largest Communications Group Publicis, which employs some 44,000 people operating in 104 countries, is the world's fourth largest advertising group and the second largest media buying group after purchasing Boston-based online advertising agency Dignitas a year ago for $1.3 billion. It is also the group behind Saatchi & Saatchi, ZenithOptimedia, Leo Burnett and Fallon. Levy sees the partnership with Google as a way to share technology and provide better ads. "We are sharing our information to help Google develop the right platforms and Google is sharing technology to help us develop the best services for our clients," Levy told the Journal. Both companies pointed out that Google was not in danger of turning into an advertising agency. "Google is not going to be an advertising agency. We've all sort of figured out where everybody goes now," Levy said. Publicis joined Google in making the joint announcement in anticipation of the World Economic Forum that begins today in Davos, Switzerland, an event centered around innovative collaborations. Google's Traditional Media Plans Over the past year Google has expanded upon its standard mainstay of placing advertisements on the Web sites of other firms, branching out into more traditional media including television via several deals including one with The Nielsen Company, newspapers and even radio through its Dmarc network. Schmidt said the collaboration with Publicis announced Tuesday will bring together two "similar corporate cultures" and help Google better understand the advertising market. "Google is focused on the technical and far removed from the creative. When we go and see advertisers, this collaboration will give us a much better understanding of their needs," Schmidt told the Times. While in Davos Schmidt is expected to meet with Sir Martin Sorrell, the chief executive of British advertising group WPP who has in the past labeled Google a "frenemy", fueling speculation of a second similar partnership for Google. Google Reveals Partnership with Advertising Giant Publicis Google's largest advertising acquisition has been its $3.1 billion purchase of DoubleClick, which is still awaiting approval from the European Union after clearing hurdles in the United States, is but a part of a movement among Internet companies such as Microsoft and Yahoo to buy digital ad agencies. Google plans to work with both DoubleClick and Publicis, Schmidt said. In an internal memo from the two firms to Publicis staff members some of the initiatives that have already arisen from the partnership were apparent. "We are excited about the progress that's been made and about the initiatives already under way. Google, for example, has established a dedicated global account team for Publicis Groupe, the first of its kind with a global advertising group," both firms said in the memo, which was cited in a recent Guardian article. "Publicis Groupe has been given access to various early-stage advertising technologies. Publicis Groupe is sharing with Google its wealth of agency experience know-how," the companies wrote in the memo. Ad Group Also Eying Expansion into Mobile Publicis has also made public that it is looking at ways to expand its involvement in mobile advertising, particularly in the U.S. and Asia, a process begun in September 2007 when it acquired French start-up Phonevalley. Levy, who considers mobile phones "probably the most important medium" for advertisers according to a recent International Herald Tribune article, sees a large potential to reach customers through the medium. "We already have close to three billion subscribers around the world. It is already the largest medium in China, with 600 million phones. And if you want to target someone individually, we will know how to get access to that person," Levy told the Tribune. The cooperation Google and Publicis have had for what is now known to be over a year may serve both firms well as they seek to improve online advertising. Related Links:
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