• by Karl Greenberg , December 6, 2006

Pontiac and Virgin Megastores are launching a promotional and licensing deal in which Virgin will license at least 30 songs a year to the GM division for use in advertising and promotions, while Pontiac gets in-store branded multimedia kiosks called Pontiac Towers in Virgin Megastores nationwide.

The new deal has Virgin acting the role of defacto music agency for Pontiac, finding new artists for Pontiac ads, promotional material and performances at concerts like Pontiac Garage. It's the first deal of its kind for Virgin Megastores, said Kathryn Mollica, director of strategic marketing for VM.

The 8-foot towers, developed by Virgin and Pontiac's agency, Leo Burnett Detroit, include listening stations offering up Pontiac-sponsored "Virgin Recommends" music from new artists whose music is featured in Pontiac ads.

The displays also have branded merchandise and interactive LCD screens where customers can watch performances of artists at Pontiac Garage concerts. They start rolling out in stores this month.

Mollica said that the music licensing part of the deal was taken over by VM from an pre-existing deal Pontiac had with Virgin Digital.

Mollica said VM's music supervisor will send Pontiac about 50 songs every two weeks for the company's consideration for marketing uses.

"Simultaneously, they will send us briefs for their latest ads, and we will pull 30 to 50 songs that we think are appropriate," she said.

Virgin will also handle promotional and label arrangements for securing artists for live appearances and concerts at Pontiac-sponsored events, Mollica said.

"In the past [the deal with Pontiac] ... was exclusive sponsorship of the college tour and Virgin Recommends. Now it's music licensing, Virgin Recommends, in-store events at Pontiac Garage, and Pontiac-branded merchandise," she said.