Instagram signs deal with major ad agency

March 8, 2014
Facebook-owned photo sharing service Instagram said it has landed its first deal with a major ad agency

Facebook-owned photo sharing service Instagram on Friday said it has landed its first deal with a major ad agency.

The leading social network wouldn't disclose financial aspects of the alliance with Omnicom, but online reports indicated it could be worth as much as $100 million in from clients the agency represents.

"Omnicom shares our passion for and understanding of the mobile Instagram community," Facebook director of market operations Jim Squires said in an email reply to an AFP inquiry.

"Our teams are going to work hand in hand to develop and execute campaigns that provide people with amazing imagery—and drive meaningful business results for advertisers."

Squires maintained that Instagram's advertising strategy will continue to involve displaying a limited number of high-quality images or videos from brands that already have a strong presence at Instagram.

Instagram in November began displaying ads as Facebook moved to start making money from the smartphone photo sharing service it bought in a billion-dollar deal in early 2012.

Instagram's opening roster of advertisers included Adidas, Lexus, PayPal, Burberry and Ben & Jerry's ice cream.

California-based Facebook is carefully adding magazine-quality photo ads to Instagram as it hopes to bring in revenue from the service without alienating users.

Explore further: Photo-sharing app Instagram expands to the Web

Related Stories

Instagram to share data with Facebook

December 17, 2012

Smartphone photo sharing service Instagram on Monday refined its privacy policy to clear the way for sharing data with Facebook, which bought the company earlier this year.

Facebook stocks lower as Instagram loses users

December 28, 2012

Facebook shares fell Friday after a report said its photo-sharing app Instagram had lost millions of users following the release of planned policy changes since dropped on an outcry from users.

Instagram to start showing advertisements

October 4, 2013

Instagram, the mobile photo-sharing app owned by Facebook Inc., says it will start showing "occasional" photo and video advertisements in the coming months.

Instagram starts showing ads

November 2, 2013

Instagram began displaying ads, as Facebook moved to start making money from the smartphone photo sharing service it bought in a billion-dollar deal last year.

Recommended for you

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.