Madison Avenue and Menlo Park continued to get closer, as news of Instagram’s one-year pact with ad agency Omnicom was followed by the announcement that Mondelez International, a manufacturer of snacks and candy, reached an advertising agreement with Facebook.
Lay’s wants to introduce a new flavor of potato chip. But it is not hiring a marketing firm or forming a blue-ribbon committee to figure out a flavor — it is asking people who have liked the brand on Facebook. In exchange for the winning flavor, the user with the best idea receives $1 million. More and more companies are turning to their Facebook fans for new ideas.