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Instagram Strikes First Big Ad Deal In A Win For Facebook
Instagram had tip-toed into advertising, debuting ads in users’ streams just last November. Today, it’s reportedly moving into the big leagues with a new advertising deal inked with the agency holding giant Omnicom. Ad Age reports the deal is worth up to $100 million.
The deal opens up ads to the brands working with agencies under the Omnicom umbrella such as Omnicom Media Group, DDB, BBDO and TBWA/Chiat/Day.
“This doesn’t change our advertising strategy moving forward — people will continue to see a limited number of beautiful, high-quality photos and videos from select brands who already have a strong presence on Instagram,” said Jim Squires, director of market operations for Instagram, in a statement to Ad Age.
Ads on Instagram look like typical image or video posts, but are flagged with “Sponsored” label. Ad Age reports that Omnicom Media Group, which lead the deal, will work on targeting and measurement refinements with Instagram.
Squires added, “Our teams are going to work hand in hand to develop and execute campaigns that provide people with amazing imagery. This is an exciting new chapter and we’re looking forward to the great creative content that comes out of this partnership.”
Michael Kors was the first brand to advertise on Instagram. Adidas, Ben & Jerry’s, Burberry, General Electric, Levi’s, Lexus, Macy’s, PayPal, and Starwood are among the brands that quickly joined the advertising ranks on the network.
Facebook acquired Instagram for more than $700 million in April 2012. The photo-based network has seen rapid adoption among users — boasting 150 million active users — and now brands. In October, social measurement firm Simply Measured reported that 71 percent of top brands were participating on Instagram, an increase of 55 percent year-over-year.