• by Cory Treffiletti , Featured Contributor, May 2, 2007

With all the changes taking place and all the consolidation being led by Google and Yahoo, it can be very easy to overlook the moves being made by the holding companies.

Over the last year the holding companies have been quietly amassing a number of investments and partnerships that diversify their portfolios and prepare them for the inevitable shift in the media buying model. As the business shifts toward the continued adoption of a consumer-centric publishing model, and as the industry shifts toward an automated, Google-esque model, the holding companies recognize that their best opportunity for continued revenue growth, or even to offset the revenue decline that would come as a result of this shift, comes from the revenue generated via the publishing and technology partnerships of online companies.

This week saw another subtle announcement when IPG developed a year-long partnership with Joost. For those of you who are not aware, Joost is the up-and-coming online video service created by the founders of Skype and Kazaa. The tool is still in beta, but I was recently playing with it -- and am convinced this represents the hottest new site of 2007. It's the closest to a true merger between traditional television and online, and incorporates all the tools such as social networking that create a truly interactive experience. The only thing holding it back slightly will be access to the living room, the traditional room where anyone can watch traditional TV, rather than the den, where people typically watch Internet TV. One partnership in this area and the tool could become the next biggest thing since, well... the Internet!

But back to the topic at hand: IPG has amassed advertisers to be involved with the iTV start-up and is likely offering other services such as co-marketing with their brands, possible barter for promotional opportunities and general marketing consulting. I would imagine that someone at the top of the holding company must see this as a precursor to a possible investment, if one hasn't been made yet. These types of relationships are becoming commonplace, and IPG actually appears to be leading the way. Publicis has done a few of these deals as well, and recently I heard rumor of some investments that Omnicom was making. WPP is probably also entering this space, though being much quieter about its moves.

These deals signal a shift, in that the holding companies understand that the opportunity for year-over-year increases in revenue from agencies is slowing down. They are witnessing the strides made by companies such as aQuantive and their diversification model, and the growth they are seeing and trying to apply to their own outdated businesses. It will be interesting to see what happens and how quickly these deals come to fruition, or if the holding companies will start entering into the mix in the way Google and Yahoo are. Imagine a time when WPP outbids Microsoft for an investment in some online companies. That'll be the day!

Don't you agree?