Active Stocks
Tue Apr 23 2024 15:59:47
  1. Tata Steel share price
  2. 161.10 -0.46%
  1. Tata Motors share price
  2. 986.60 1.34%
  1. NTPC share price
  2. 346.90 1.12%
  1. Bharti Airtel share price
  2. 1,342.30 3.38%
  1. HDFC Bank share price
  2. 1,507.20 -0.34%
Business News/ Tech-news / News/  Facebook’s Instagram said to sign $50 million Omnicom ad deal
BackBack

Facebook’s Instagram said to sign $50 million Omnicom ad deal

The agreement will let brands that work with Omnicom show promotional videos and pictures to Instagram users

Instagram, which Facebook bought for more than $700 million in 2012, only rolled out advertising five months ago with brands such as Lexus and Ben & Jerry’s. Photo: AFPPremium
Instagram, which Facebook bought for more than $700 million in 2012, only rolled out advertising five months ago with brands such as Lexus and Ben & Jerry’s. Photo: AFP

Facebook Inc’s Instagram mobile photo-sharing service has signed an advertising deal valued at about $50 million with Omnicom Group Inc, people with knowledge of the matter said.

The agreement will let brands that work with Omnicom show promotional videos and pictures to Instagram users, said the people, who asked not to be identified because the details aren’t public.

The pact is part of Facebook chief executive officer Mark Zuckerberg’s push to generate more sales from mobile users, which now make up more than half of ad revenue. Instagram, which Facebook bought for more than $700 million in 2012, only rolled out advertising five months ago with brands such as Lexus and Ben & Jerry’s. WhatsApp, which Facebook is purchasing for $19 billion, gets subscription revenue from messaging users and doesn’t advertise.

Omnicom shares our passion for and understanding of the mobile Instagram community, Jim Squires, director of market operations at Instagram, said in a statement. Along with their clients, they’ll help to continue to set a high bar for creative work that inspires people.

Squires declined to comment on the value of the deal. Daryl Simm, CEO of Omnicom Media Group, didn’t respond to a request for comment. Omnicom’s group of advertising businesses includes BBDO Worldwide, TBWA Worldwide and DDB Worldwide Communications Group.

Instagram’s deal with Omnicom won’t change the photo- sharing service’s advertising strategy, which is to show a limited number of beautiful, high quality photos and videos from select brands who already have a strong presence on Instagram, Squires said.

Advertising Age earlier reported Omnicom’s deal with Facebook’s Instagram. REUTERS

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Mar 2014, 11:58 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App