Instagram has inked its first major ad deal with an agency, and it’s big. The photo- and video-sharing site is rolling out a paid advertising program with a year-long commitment from Omnicom to spend up to $100 million, according to people familiar with the matter. The arrangement means that users will start seeing ads in their streams from brands that work with Omnicom’s media and creative agencies, including Omnicom Media Group and creative shops within the holding company.
Facebook’s Instagram photo-sharing service has been treading softly as it experiments with showing advertising to its users, but you can expect to see more commercial messages there in the coming year. AdvertisingAge reported this week that Instagram has signed its first major deal with a major ad agency – an agreement with Omnicom Media, the giant conglomerate that owns such leading ad firms as BBDO and TBWA/Chiat/Day. The deal is effectively a commitment by Omnicom to spend up to $100 million on Instagram ads in the coming year, according to AdAge’s Alexandra Bruell. An Instagram spokesman confirmed the deal to Silicon Beat, but wouldn’t confirm the reported value of $100 million.