Home  › Marketing › Strategies
instagram2014

Instagram Secures First Major Ad Deal With Omnicom Group

  |  March 11, 2014   |  Comments

After running its first sponsored post four months ago, Facebook-owned Instagram inks its first big ad deal with Omnicom Group.

michaelkorsAfter running its first sponsored post, an ad for Michael Kors, four months ago, Instagram, the mobile photo-sharing site purchased by Facebook in 2012, now has signed its first major ad deal with Omnicom Group.

Neither Facebook nor Omnicom disclosed financial details of the deal, and estimations vary. Bloomberg first valued the agreement at $50 million, while Ad Age reported that it totaled up to $100 million, followed by Adweek saying that the deal was worth close to $40 million.

Although the actual value of the Instagram-Omnicom partnership is still unknown, one thing is for sure: this one-year agreement will allow Instagram users to see promotional images and videos that are run by brands working with Omnicom's media and creative agencies, including Goodby Silverstein, BBDO, DDB, and TBWA/Chiat/Day.

Meanwhile, the deal enables Instagram to expand its paid advertising model that the site started testing a year ago, because Omnicom will help Instagram develop its targeting and measurement capabilities. Before, brands on Instagram were only able to target their consumers via gender and age, information that was taken from their Facebook profiles.

Instagram is reportedly exploring another big ad deal with Paris-based Publicis Groupe, which will merge with Omnicom Group to form the world's largest advertising holding company.

Of Instagram's 150 million monthly active users, more than 60 percent live outside of the United States, according to January figures from Nitrogram, an Instagram analytics and engagement platform. On Instagram, 16 billion images have been shared, 55 million photos are added every day, and 1.2 billion likes happen daily.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Yuyu Chen

Yuyu Chen is a junior reporter at ClickZ. Her work has appeared in Local East Village, New York Daily News and Brooklyn Chamber of Commerce website. Yuyu received her M.A. in Business and Economic Reporting from New York University in May, 2013.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...
    • Technical Business Analyst
      Technical Business Analyst (OmniVista Health) - BaltimoreOmniVista Health is looking to add a Technical Business Analyst to our expanding team...