Instagram Signs Year-Long, $100M Deal With Omnicon In Its First Ad Deal
Instagram has signed a $100 million year-long deal with Omnicon Media Group (NYSE:OMC), a global advertising agency, AdAge reported on Friday. The agreement marks the company’s first major ad deal, and has some whispering about whether Facebook Inc. (NASDAQ:FB) might finally start to make some money off the company it paid $715 million for two years ago.
Instagram first announced that it would be debuting advertising on the social media platform in October of last year. The company then began testing ads in early November, debuting with ads from brands like Michael Kors, Levi’s, Burberry, Lexus, General Electric, and Ben & Jerry’s.
“This is an exciting new chapter and we’re looking forward to the great creative content that comes out of this partnership,” a Facebook representative said, per Mashable. “Omnicon shares our passion for and understanding of the mobile Instagram community. Along with their clients, they’ll help to continue to set a high bar for creative work that inspires people,” he added.
Facebook has stated that even though Instagram has officially signed a partnership with Omnicon, users shouldn’t expect a huge swath of new ads appearing on their photo streams. Facebook and Omnicon are working with a “very limited number of long-term partners,” the two companies said in a statement, per AdAge.