Companies can't buy ads on Facebook fast enough.
Omnicom Media Group recently inked a deal with Blinq Media, a New York-based startup that offers bulk ad buying on the social network. The nonexclusive arrangement allows any of Omnicom's agencies and buyers access to Blinq's software and Facebook's ads-buying platform, also known as the "Ads API."
Blinq licenses its software to Omnicom, and though the company declined to specify terms, these deals are typically structured around commission on sales. Omnicom said it will look to buy more Facebook ads in the future through this system.
The social network makes the most money from display advertising and is estimated to book $2.19 billion in ad revenue in the U.S. this year, according to the latest eMarketer research. That sum takes on new significance now that Yahoo and Google are estimated to make less in display than predicted. The firm projects Google will make $1.15 billion in display ads for 2011, down 10% from an earlier estimate, while Yahoo is expected to bring in $1.62 billion from banner ads, down less than 2% from an earlier analysis.
"Facebook ad buying is clearly ramping up quickly, and we expect many of our clients to make use of this new arrangement," said Damian Blackden, president of Ominicom's Annalect division, which was responsible for the deal. Annalect manages digital-data analysis as well as media buying across certain digital platforms, such as on Facebook or on Google search.
Blinq Media, headed by CEO Dave Williams, is part of a growing group of startups, including AdParlor and Adaptly, that specialize in brokering Facebook ads. The social network recently opened up its ad-buying system where anyone can bid on ad spots that appear on the right side of the site. But the company's buying system is not designed for buying large volumes of ads, which prompted Facebook to open up its software to third-party companies such as Blinq to broker bulk buying.
Some of Omnicom's bigger advertising clients that will take advantage of the agreement include Hewlett Packard, Monster, Intel, McDonald's, PlayStation and Nissan.