Instagram strikes huge ad deal with Omnicom Media Group

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Facebook-owned Instagram has made a one-year deal with Omnicom Media Group worth $100 million, according to a report in Advertising Age.

The agreement, which is the image-based social network’s first major ad deal, enables brands that work with Omnicon’s agencies to deliver ads to users’ Instagram feeds. Omnicon is one of the largest media groups in the world and manages more than 1,500 agencies, including BBDO, DDB 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,” Jim Squires, director of market operations for Instagram, told Ad Age in a statement. “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.”

Instagram just began to offer ads last October, rolling out ads from initial partners, including B2B marketer GE. Striking such a huge deal will help Instagram, which has an audience of 150 million active users, establish itself as an advertising power player.

When it first introduced its ads, Instagram assured users that it would focus on delivering high-quality photos and videos from brands. This deal keeps that promise, according to Ad Age. The ads will be “consistent with the quality of the content on Instagram” and will not be offered on a programmatic basis—buys will be “manual and selective.”

Last November, Simply Measured released a study touting that Instagram was the fastest growing network and had attracted major enterprise advertisers to its platform. While the study found B2B marketers were not adopting Instagram in huge numbers, the ones that did were quite successful.

By Jarrett Neil Ridlinghafer
Chief Technology Analyst & Consultant
Atheneum-Partners
Founder & CTO
Cloud Consulting International, LLC
Synapse Synergy Group, Inc.
4D Healthware, Inc.

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