Magna Global Bets on Digital Video

May 6, 2016 | Share this article

When investing in digital, media agencies have generally protected TV budgets at the expense of print, but falling linear TV ratings have led Magna Global to shift $250m from television to YouTube.

“In the past, we weren’t taking a bite out of linear budgets for a number of reasons,” said David Cohen, US president of Magna Global. “But really, over the last six months, we’ve been trying to knock down those barriers in earnest,” he added in remarks reported by Ad Exchanger.

The deal is the largest upfront deal so far struck for Google Preferred – the top 5% of videos on YouTube in terms of both quality and performance.

As well as the increased reach of YouTube – it claims to reach more 18-49 year-olds than any TV network with just its mobile traffic – agencies can also utilise new ROI metrics that allow them to, for example, assess how digital ad exposures affect offline sales and brand lift.

Cohen also welcomed YouTube’s moves to align more closely its premium inventory pricing with that of television.

“In year one of the partnership, we’re clearly identifying what kind of inventory we want access to and what kinds of formats we want to run,” he said.

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