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Facebook Scores Again As Instagram Lands $100 Million Advertising Deal With Omnicom

By Michael Briggs | Mar 10, 2014 10:00 AM EDT

Instagram has secured an advertising deal with Omnicom Media Group that could secure the Facebook-owned photo-sharing service $100 million over the next year.

The deal comes just weeks after Facebook purchased Whatsapp for $19 billion.

Instagram, which claims 150 million active users and 55 million photos loaded daily, said the service will begin to integrate ads from brands that work with Omnicom's media and creative agencies, AdAge reports.

"This is an exciting new chapter and we're looking forward to the great creative content that comes out of this partnership," Jim Squires, director of market operations at Instagram said, according to the Los Angeles Times. "Our teams are going to work hand in hand to develop and execute campaigns that provide people with amazing imagery - and drive meaningful business results for advertisers."

"This is another example of the media becoming the message," Daryl Simm, CEO of Omnicom Media Group, told AdAge.

Instagram debuted its first ads, which included Michael Kors, General Electric and Levi's, four months ago. It was reported that these early advertisers reached more than 7 million eyeballs in just over a week. However, these ads only targeted users based on their age and gender listed in their Facebook profiles.

At the time of the announcement, Instagram assured users that sponsored photo ads will not ruin the Instagram experience:

"Our aim is to make any advertisements you see feel as natural to Instagram as the photos and videos many of you already enjoy from your favorite brands."

That message was reiterated this week by Squires.

"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," Squires told CNET in a statement.

Ads will be controlled so that they show up in a newsfeed for at least one day, even if a user logs in and out. However, users will not be shown a large number of ads, according to AdAge.

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