In what is possibly the largest one-time, cross-platform upfront deal between a Hispanic media agency and a Hispanic TV network in history, Zubi Advertising of Miami and Univision have completed an all-encompassing media advertising deal approaching $80 million.
The deal includes advertising on all three Univision TV networks--Univision, TeleFutura and Galavision--as well as 64 Univision owned-and-operated TV stations, Univision radio stations and the online units of all those properties (plus mobile). It was hammered out by the sales team at Zubi Advertising and by Peter Lazarus, executive vp of network sales at Univision; and Carlos Deschapelles, senior vp of Univision network sales.
The talks for the deal began with a meeting between Joe Zubi, president and CEO Zubi Advertising; Joe Uva, CEO of Univision; and David Lawenda, president of advertising sales and marketing for Univision.
The deal involves all the clients of Zubi Advertising who advertise on Univision, Ford, American Airlines, SC Johnson and Washington Mutual, among others, about eight or nine clients in all.
The scope of the deal is a testament to the new philosophy that Univision adopted when Uva took over as CEO last year: that silos would be broken down and advertisers able to make one-stop purchases of national and local TV, radio and the Internet, without having to negotiate deals with each segment separately.
"It has always been a problem in the past to buy national TV and Univision stations at the same time," Zubi said. "But with the new Univision philosophy and after meeting with Joe and David, and working with Peter and Carlos, the deal became easy to do."
Both Zubi and the Univision executives said the deal was about two months in the works, before a deal was reached late last week (June 20).
It is clearly the first mega deal of the Hispanic upfront, which traditionally doesn't do the bulk of its upfront deals until well after the English-language broadcast, cable and syndication markets are completed.
The deals vary in scope by advertiser, with some beginning this fall and other beginning in calendar year 2009. The TV deals include not only 30 second commercials, but also assorted product integrations.
Zubi said he would like to do similar deals with other media companies. "We are hoping that this will set a benchmark with our media partners moving forward," he said.
It was Zubi who approached Univision and sought this broad range deal, but it was Univision's new philosophy under Uva that was able to facilitate it.
"Fortunately we restructured when I came on board last fall," Lawenda said, "and we broke down the silos between national and local and between television and radio, and were able to facilitate this deal."
Lawenda said Univision is in talks with other media agencies, both Hispanic and English-language, and hopes that this deal will be a model to formulate deals with those other agencies.