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Penske Media Corp., which owns a portfolio of entertainment titles including Variety and The Hollywood Reporter, is exclusively selling Vox Media‘s advertising inventory in Canada, according to PMC chief revenue officer Craig Perreault.
The agreement, which took effect March 8, will let PMC represent the entire Vox Media portfolio in direct sales efforts. Vox Media will continue to manage its programmatic and branded content efforts.
“With the Canadian market, there is no sales channel conflict, and it is a very different market,” Perreault said. “We think that by combining forces, we can generate more revenue on both sides.”
The partnership comes one year after PMC invested $100 million in Vox Media in February 2023 for a 20% stake in the company, but it does not signal any change in the two companies’ relationship, according to Perreault.
The combined audience reach of PMC and Vox Media makes the duo the second-largest source of digital media inventory in the country, according to measurement firm Comscore.
Details of the partnership
Vox Media has historically worked with a third-party reseller to represent its advertising inventory in Canada, a common strategy for U.S. companies.
But as the contract between Vox Media and the firm neared its conclusion, PMC offered to represent its advertising inventory, suggesting that it would be more efficient for both parties, according to Perreault.
PMC established a five-person direct sales team in Toronto several years ago, and the two companies have a working relationship as a result of the investment last year.
By combining their inventory, PMC can offer advertisers a run of network or the ability to buy specific audience segments across the portfolio. PMC will also honor direct sales on specific Vox Media brands, which include titles like New York Magazine, The Verge and Eater.
“We’re thrilled to have PMC representing our advertising sales efforts in the Canadian market,” said Vox Media chief revenue officer Geoff Schiller in a statement. “Our combined scale and influence, along with best-in-class marketing solutions, will offer clients an unbeatable proposition.”
PMC will charge a fee for its involvement, but the publisher wouldn’t share specifics. Other rep firms in similar situations have charged between 25% and 40% for such services, according to a person familiar with the business.
The companies wouldn’t share their commercial goals for the partnership, although both expect the arrangement to generate more revenue as a combined offering than either could generate alone, according to Perreault.
“We are still two different companies, and we are still independently managed,” Perreault said. “The Canadian market was just an opportunity for both parties to make more money than they did last year and in previous years.”
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