Its no secret that Instagram has been building up its ads platform, after all, Facebook would want to see it generating revenue on its own. While it has been quite a few months since the company started pushing ads, even if just on a trial basis, into users’ feeds, Instagram may just have inked its first major advertising contract. The folks at Ad Age report, citing people familiar with the matter, that Instagram has established an year-long commitment with Omnicom under which the latter would pay up to $100 million for ads that run on the popular photo and video sharing service.
Ads will be pulled in from Omnicom’s media and creative agencies, which represent some of the biggest clients in the business, BBDO, DDB and TBWA/Chiat/Day are perhaps some of the most popular creative agencies out there. The deal isn’t expected to change Instagram’s advertising strategy though, Instagram has always said that it will show users’ ads from companies that already have a strong presence on the service.
Instagram’s user base is impressive to say the least, its certainly big enough to catch the attention of the big boys, with over 150 million users, 55 million photo uploads daily and over 60 percent of all active users coming from outside the U.S., the stats are hefty enough to justify advertising on the service.