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MTV, ad giant wed in $300 mil deal

OMD buys year on music net

NEW YORK — MTV has engineered a $300 million deal that will give ad agency OMD first dibs on any available cable network slots and online spinoffs throughout the 2006-07 season.

OMD didn’t list specific advertisers in its announcement, but the agency represents longtime MTV advertisers including McDonald’s, Pepsico, Sony Playstation and Universal Studios.

“In scope and magnitude, this is the biggest deal of its kind in the U.S.,” said Joe Uva, prexy and CEO of OMD Worldwide.

Every MTV cable network will be available to as many as 30 major OMD advertisers, from MTV itself and VH1 to Nickelodeon and Comedy Central.

All these networks’ Web sites are also in the mix for OMD’s clients, including such recently acquired online businesses as IFILM, GameTrailers.com, Neopets and Xfire. Other areas OMD will explore include video on demand, podcasting and wireless transmission.

Uva said, is that “our clients will get price predictability during the season, and they’ll be given first access” to the networks and the various platforms owned by MTV.

An indication of how fast the new MTV platforms are growing is that OMD will spend $30 million in advertising and marketing on them in 2006-07.

OMD has also agreed to join MTV in a research project that will study whether the loyalty of MTV viewers to its networks and Web sites spills over into a desire to buy the products that are advertised on them.

The executives who worked on the deal for MTV are Michael Wolf, president and chief operating officer of MTVN, and the executive VPs of ad sales for MTV Networks, Hank Close and Sue Danaher.

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