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GroupM backs off from exclusive ad deal with YouTube in Australia

GroupM moves away from exclusive YouTube deal

GroupM is backing off from a deal it made with YouTube in Australia around its Google Preferred service, in which agencies can book the top five per cent of its premium content upfront.

The media agency group made the deal with YouTube after it announced Google Preferred at its Brandcast event globally last year. According to The Australian, the two-year deal in Australia is now up and the business has decided not to renew on the same terms.

It reports that GroupM has briefed rivals to come up with alternatives for the spend after it found the investment in YouTube to not live up to expectations.

GroupM had shifted spend from TV for the deal, despite budgets for YouTube often coming from digital’s pocket. According to the report, spend could be shifted back into Australian TV channel budgets as channels Ten and Seven look to see their guaranteed spend increase, while spend on Channel Nine could decrease.

This may come as a blow to YouTube, which had been using the move from TV budgets into the platform as a positive story for investors. Last year the business said it was expanding Preferred out to new markets due to the success it was seeing taking TV budgets.

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