Facebook Inc (FB): Instagram signs $100 million ad commitment deal
Facebook Inc (NASDAQ:FB) photo social network subsidiary Instagram has signed an advertising commitment worth up to $100 million over the next year with agency holding company Omnicom. Instagram opened up their advertising platform four months ago. Michael Kors was Instagram’s first ad client and the photo social network community has been receptive to the ads.
Omnicom will work with Instagram in targeting and measuring certain users in a way that was done in the past with other brands. For example, Instagram was able to target users based on age and gender using Facebook profiles when doing ad campaigns with Levi’s and Ben & Jerry’s.
Instagram is reportedly exploring a potential deal with Publicis Groupe. Publicis and Omnicom proposed a merger on July 28th. The combined company would be called Publicis Omnicom Group.