“Global marketing” [cross-platform] deals across its multimedia stable are worth around $1 billion, claimed AOL Time Warner at Monday’s session of the Media Week held by Credit Suisse First Boston.
However, AOL TW co-chief operating officer Bob Pittman declined to elucidate whether this figure represented 2001 income or was spread over a number of years. He also denied that such deals were done at the expense of advertising agencies or that AOL was effectively in competition with them.
While conceding that many major cross-platform contracts were negotiated direct with senior client-side executives, Pitman insisted that AOL is “not competing at all” with agencies – many of which he claims now seek similar deals on behalf of their clients. “We work very closely with the agencies,” he schmoozed.
Recently AOL TW has announced such arrangements with the likes of Burger King, DaimlerChrysler, eBay, Kellogg and Kraft Foods. It is not alone in exploiting its cross-platform muscle; fellow media titan Viacom has similar deals in hand with NewsCorp, Procter & Gamble and Tricon Global Restaurants, the holding company for fast food chains Pizza Hut, KFC and Taco Bell.
News source: AdAge.com