2-6-14The two companies are calling it a $100 million multi-year deal. A Clear Channel spokesperson would not say if that means Horizon is cutting the company a $100 million check: "We're not getting into the specifics." According to the announcement, Horizon?s clients will have exclusive and early access to Clear Channel assets, such as radio, out of home, mobile, digital, and events. The big picture goal is to prove to Horizon's clients that they are getting a return on their investment and that these Clear Channel assets bring them that ROI.
Horizon CEO Bill Koenigsberg told AdWeek he cut the deal without any signatures from clients (Horizon has over $4 billion in billings). He said, ?Based on our volume as an agency in general, we feel comfortable we can meet this. But this offers unique groundbreaking ownership positions for clients. These programs are not the kind of things that any brand can slap their name on. We feel they?re going to be innovative. We?re going to have clients clamoring.? The Horizon website shows Corona, the History Channel, and GEICO among its clients.
Horizon will have exclusive rights across Clear Channel events and promotions, including artist integration programs, world premieres, and customized shows at Clear Channel?s iHeartRadio Theaters in New York and Los Angeles, as well as special events created just for Horizon clients. In addition, the agency will have access to talent at Clear Channel for special content-creation opportunities.
Clear Channel has been very big on media mix modeling as a way to bring more revenue to the company and the radio industry. Media mix modeling is a complicated formula used by (mostly national) advertising agencies to help them calculate ROI for clients. And it will be the focus of part of the deal between Horizon and Clear Channel. "The partnership will also allow for the co-creation of new psychographic targeting systems utilizing Horizon?s proprietary tools and insights fused with unique music and consumer research built on Clear Channel's national reach. The valuable research insights developed throughout the partnership will fuel further media mix model development."
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