Madison Avenue Filter: Instagram Strikes Deal With Ad Agency Omnicom

GreenInstagramBannerFacebook-owned photo- and video-sharing network Instagram just went big-time on Madison Avenue, as Ad Age reports that Instagram received a year-long commitment, totaling up to $100 million in ad spending, from Omnicom.

According to Ad Age, Instagram users will begin seeing ads in their feeds from brands that are clients of Omnicom units including Omnicom Media Group, BBDO, DDB, TBWA/Chiat/Day, PHD, and OMD.

Ad Age reported that Publicis Groupe‘s Starcom MediaVest Group is also in talks with Instagram.

As for the arrangement with Omnicom, Instagram will ensure that ads remain in its users’ feeds for “an extended period of time,” or more than one day, even if users log out, according to Ad Age, which added that the ads will remain consistent with the quality of content on Instagram, so “buys will be manual and selective.”

Instagram Director of Market Operations Jim Squires said in a statement to Ad Age:

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 that already have a strong presence on Instagram. Our teams are going to work hand-in-hand to develop and execute campaigns that provide people with amazing imagery. This is an exciting new chapter, and we’re looking forward to the great creative content that comes out of this partnership.

Omnicom Media Group CEO Daryl Simm told Ad Age his company would work with Instagram on targeting and measurement so that its clients can determine their returns on investment, adding:

This is another example of the media becoming the message. It’s a high-quality engagement with the consumer, as opposed to a quick hit. It’s that conjecture that makes it so appealing to us. It’s a real development in terms of the paid advertising opportunities (Instagram is) offering.

Readers: What do you think the Omnicom deal and other potential agreements will do to the ad load on Instagram?

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