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+
More from Instagram
Could You Be Instagram’s New “Meme Manager”?
Instagram is looking to hire someone to liaise with "emerging digital media publishers," a.k.a. a Meme manager.
Instagram Is Testing A Built-In AR ‘Background’ Effect For Stories
According to reports, Instagram is testing a new AR 'background' feature that lets users change the background for their Stories.
How To Publish And Schedule Posts To Instagram From Facebook Creator Studio
It's happening: starting today Page admins can publish and schedule posts on Instagram and IGTV from the Facebook Creator Studio.
