Google and OMG tie up promises to refine online display advertising service

The two-year partnership will see Omnicom (OMG) buy display ads for clients through Google.

As part of Google's plans to grow revenue in the search ads segment, the companies will work together to build a global ‘trading desk' that will facilitate the purchase of display ads on Google's ad exchange. This is an auction-based system that matches sellers and buyers of ad space across group of websites. Clients can then obtain a real-time data on traffic for a particular ad space.

The relationship between OMG and Google is not exclusive.

Although clients will benefit from an enhanced ability to target niche media, the observers in the regional digital sector have speculated that there wll be a "bias" when it comes to choosing where to advertise. There are also fears that the commitment to Google will weaken business partnerships with other simlar platforms such as Yahoo and Microsoft.

Nonetheless, Nick Fawbert, managing partner of Third Space Consulting in Singapore, is optimistic about Google's move. "Google provides the service equally to both party [clients and agencies], it has no influence on the outcome and so no conflict of interest is likely to arise," he said.

Fawbert said a healthy industry would need a dynamic and open market. In his view, Google and OMG set a good example for the online ad industry. He stated that any technology that contributes positively to clients' needs will always be welcome.

He added: "I look forward to other Ad Exchanges and Networks responding with equally effective services. Challenges will only arise if Google attracts such a dominant market share that their competitors are starved of the investment necessary to compete."