The joint venture will result in customised mobile advertising, technology and metrics to run across Microsoft's mobile and web properties.
Phonevalley, which is part of the Publicis-owned VivaKi Nerve Media Center, will work with Microsoft properties such as the Microsoft Media Network, Bing and MSN on packaged solutions that will be offered in 14 markets including the US, UK, Spain and Germany.
Publicis said the initiative would result in mobile advertising for six sectors - luxury, retail, entertainment, automotive, travel and financial services.