Instagram only started showing ads in users’ streams last fall, but now it’s ramping up the program quite a bit: The company has signed a big deal with the large advertising agency Omnicom. AdAge pegs the value of the year-long deal at “up to $100 million,” citing unidentified sources.
Omnicom is one of the largest advertising groups in the world, with mega-brands like Procter & Gamble, General Electric, (Starbucks and HBO falling under its umbrella. Instagram, which was acquired by Facebook for nearly $1 billion in 2012, counts over 150 million users.
“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, Instagram’s director of market operations, said in a statement to AdAge. (Instagram had previously shared some guidelines for ads on the platform.) Daryl Simm, Omnicom Media Group CEO, described the partnership as “another example of the media becoming the message.”
Below, watch a video of Instagram cofounder Kevin Systrom speaking with Om about advertising and other topics at last fall’s Gigaom Roadmap conference.
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