While Google (NSDQ: GOOG) may be viewed with a great degree of ambivalence by most major ad agencies, Publicis Group has been unequivocal in its embrace of the search giant. So to explain how this strange relationship has been working, Tim Armstrong, president of Advertising and Commerce, NA/VP of Google, took the stage at the Interactive Advertising Bureau’s Mixx conference with David Kenny, managing partner of Publicis’ digital hub VivaKi. The two discussed their courtship and goals, as well as some hints about what they’re collaborating on.

—Where it began: Armstrong ran into Kenny, who came over as CEO of Digitas and was named Publicis’ chief digital strategy officer last year, at an industry event in April 2007. They discussed general issues relating to the ad business. Armstrong: “We were talking about the problems related to marketing and online media, and how 40 percent of people’s time was being used on operational issues.” Kenny: “With those kinds of numbers, I couldn’t see the digital revolution forward without untangling them.” About 10 minutes after their meeting, Armstrong was on the phone to discuss Google’s plans to purchase DoubleClick. As Google went about building its online ad empire, talks with Publicis eventually got more serious about where they could collaborate.

Much more after the jump...

—All about collaborating: Armstrong: “The partnership is based on the fact that digital is invading all media. So as we spoke, we saw ways of mutually reaching areas that were otherwise difficult for us individually. Also, David, coming from Digitas and being acquired by Publicis, had a global view. We spent about $6 billion on building platforms. Now we wanted to be able to put that in practice. That’s where Publicis was seen as a great help.” Kenny: “We introduced our open platform a few weeks ago. This isn’t just about Publicis and Google.  We were able to build, we built an open source platform and we’re working with Discover Networks, quadrantOne and others to move beyond just the TV screen or the newspaper. All media can be addressable and eventually all media will enable us to buy audience, not just space.” Another area where the two wanted to address: talent. Kenny: “Fundamentally, the money shifted to digital faster than the talent did.” Google and Publicis have begun their own “employee exchange” program, where one staffer will work at the others’ offices for a period of time. What Publicis found: “It’s not just free gourmet meals at Google. Our guy said this was really hard work.”

—YouTube and mobile: Right now, Publicis and Google have been testing ads on the iPhone’s YouTube app and are currently working on apps for the Google Android smartphone, but were otherwise tight-lipped about what might be coming.

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