If you haven’t heard this yet, then here’s the news: Instagram signed a $100m dollar deal with Omnicom. A small reminder; Last year Omnicom and Publicis Groupe created an advertising giant from their high-profile merger. This is the first big win for Instagram, since parting with Facebook.
Also Read: 5 Top Mistakes That Companies Make in Social Media
So, how does this affect you? Till now, Instagram was trying in a subtle manner to incorporate ads on users’ newsfeed. More specifically, the platform has been experimenting with advertising from brands such as Michael Kors, General Electric, Levi’s, Lexus, and Ben & Jerry’s, that had considerable success.
Right now, with this bold move, Instagram will serve ads to newsfeeds in a more frequent manner. As advertising companies desperately want to enter the mobile market and increase their share, the visual social network shows some impressive stats, now having over 150 million users. It doesn’t stop here; according to Venture Beat “the global mobile ad market grew by 105.9 percent in 2013, reaching $18.16 billion in size and up from $8.8 billion in 2012. The US mobile ad market grew by 122 percent to $9.69 million during that same period.”
While this move may compromise the overall quality (?) of the visual social network, Jim Squires, Director of Market Operations for Instagram, stated:
[quote]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 who already have a strong presence on Instagram[/quote]
He also added that teams from both parties will work closely in order to maintain the high imagery standards set by Instagram. Following Omnicom’s move, Publicis Groupe is taking seat at the new ad race, with Starcom MediaVest Group apparently also in talks to join Instagram‘s program. Let’s see!
How do you feel about seeing more ads on Instagram? Do you think that this move compromises its visual quality?
Related Stories:
- The Top 10 Companies You Should Follow on Social Media
- [Infographic] Instagram – Select Photos Your Shoppers Will Love
- 3 Tips to Increase your Google Rankings With Google+
You might also like
More from Instagram
Instagram Expands IGTV Ads To Select Creators In The UK And Australia
After launching IGTV ads in the US last May, Instagram is now expanding the feature to select creators in the …
Instagram Will Soon Let You Save Your Stories As Drafts
Instagram has announced it's working on an option to save your Instagram Stories as drafts that you can post later.
Facebook Is Building An Instagram App For Kids Under 13
Facebook confirmed reports it is building an “Instagram for Kids” for users under the minimum age for its flagship app.
Instagram Limits Interactions Between Teens And Adults They Don’t Follow
Instagram is introducing new policies and features to limit interactions between teenagers on its platform and adults they don't follow.
Instagram Releases New Set Of Stickers Honoring Women In STEM On Pi Day
Just in time for Pi Day over the weekend, Instagram released a new set of women in STEM-themed stickers.
Facebook Tests Feature That Lets You Share Reels On Facebook
Facebook has confirmed the test of a feature that allows Instagram users to share reels on Facebook News Feed.
Instagram To Relaunch Its Lite App In 170 Countries With Support For Reels
Instagram Lite could make its big comeback with new features and slightly larger file size, and support for Reels.
N26 Highlights Banknote Gender Parity With New AR Effect
Mobile bank N26 has launched a new AR effect that highlights the low representation of women on banknotes.
An Instagram Bug Made Likes Disappear For Some Users
If you've suddenly seen Likes disappear from your posts on Instagram this week, you're not the only one.
