Microsoft lands Viacom as ad partner

Microsoft lands Viacom as ad partner

Summary: Microsoft has landed Viacom as an exclusive advertising partner. With the deal, announced Wednesday, Microsoft gets another customer for its Atlas ad platform and splits revenue on remnant inventory.

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TOPICS: Microsoft, Banking
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Microsoft has landed Viacom as an exclusive advertising partner. With the deal, announced Wednesday, Microsoft gets another customer for its Atlas ad platform and splits revenue on remnant inventory.

The deal is wide ranging, but he most notable part of the deal is that Microsoft's Atlas platform becomes the exclusive ad serving tool for Viacom's brands ranging from MTV to Comedy Central to Nickelodeon. Microsoft has been on an advertising tear of late. Viacom joins Facebook, Digg and CNBC as large Microsoft ad partners. And given Viacom's history with Google it was pretty clear that Sumner wasn't going to call Larry and Sergey.

While the ad-serving is the big win for Microsoft there are other components to the partnership. For instance, Microsoft will license Viacom's video content for use on MSN and Xbox 360. Meanwhile, Microsoft will advertise on Viacom's broadcast and online networks over five years. And the two will partner on games.

Financial terms weren't disclosed, but according to a statement:

The deal has a projected base value of approximately $500 million in financial considerations and business services between the two companies over the initial five-year length of the agreement. The deal includes a combination of revenue sharing provisions, guarantees and content licensing agreements. The agreements contemplate the potential for expansion of the transactions.

Reading between the lines it sounds like Microsoft giving Viacom advertising and content licensing revenue so it can claim another exclusive ad win. Microsoft's ad serving technology, Atlas AdManager, was acquired in the aQuantive purchase. As for remnant inventory Viacom and Microsoft will split the revenue.

Topics: Microsoft, Banking

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2 comments
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  • I see law suits everywhere.

    Ok, so if MS has an exclusive right with Viacom and someone puts Viacom content on YouTube (giving Google free content to sell ads against) I see law suits coming hot and heavy...
    No_Ax_to_Grind
    • Wow, and does anybody know if IBM or Apple ...

      ... do any advertising on MTV, VH1 or Spike TV?

      THERE'S an interesting strategy: just buy up ALL the ad companies and cable media companies and your competition won't be able to advertise ANYWHERE!

      I think they call that Communism.
      OButterball