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Instagram Inks Ad Deal With Omnicom Worth Up to $100 Million

Instagram Inks Ad Deal With Omnicom Worth Up to 100 Million Agency News Advertising Age


Instagram has inked its first major ad deal with an agency, and it's big.

The photo- and video-sharing site is rolling out a paid advertising program with a year-long commitment from Omnicom to spend up to $100 million, according to people familiar with the matter.

The arrangement means that users will start seeing ads in their streams from brands that work with Omnicom's media and creative agencies, including Omnicom Media Group, the media agency network that spearheaded the deal, and creative shops within the holding company likeBBDODDB and TBWA/Chiat/Day. Omnicom's media agency network houses PHD and OMD.

Stashed in: Facebook!, Instagram!, Advertising, Monetization, Active Users

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This deal is amazing, and it sounds like just the beginning.

Those agencies have a lot more dollars to deploy if they like what they're seeing.

And to think, just two years ago many people wondered out loud if Facebook was way overpaying in spending a billion dollars on Instagram.

I think we can conclude, once and for all, that Facebook got a bargain, and Google, Yahoo, and Twitter all missed out bigtime.

It is unclear that Yahoo can do this kind of deal with Tumblr because Tumblr does not have the mobile engagement that Instagram enjoys. That's not really Tumblr's fault.

Instagram is just way more engaging on mobile than just about every other app on the planet.

I was looking for current Instagram engagement numbers and found this:

Instagram grew its user base to 150 million monthly active users in half the time that it took Twitter and in two years less than Facebook, according to research by the think-tank L2 Intelligence.

During 2013, the company gained more than 60 million new monthly active users. By  comparison, Twitter only gained 37 million new users in the same time period.

What's rather strange, however, is that Instagram hasn't publically disclosed its number of monthly active users since September 2013. During Facebook's Q4 earnings call, though, FB CFO David Ebersman revealed that Instagram doubled its user base, which should put its total around 180 million monthly active users. 

Instagram also gets 1,000 comments per second and 8,500 likes per second, totaling 1.2 billion likes per day, according to L2. About 16 billion photos have been uploaded to the app since it launched. 

Here are the number of active Instagram users with product milestones, as a chart:

Instagram Growth Chart engagement active users

Again, Facebook looks brilliant for having made this bet.

And kudos to Instagram for continuing to kick ass.

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