That Instagram-Omnicom Deal Is Actually Worth $40 Million

Popular mobile platform inks first agency partnership

Don’t miss Commerceweek, February 28–29 in NYC, to explore the technology and trends fueling commerce. Get strategic insights from leaders at The New York Times Advertising, Turo, TikTok and more. Register.

The Instagram-Omnicom deal that has the digital ads space buzzing is actually worth close to $40 million, Adweek has learned.

Ad Age yesterday reported that the contract totaled about $100 million, while Bloomberg earlier today pegged it at $50 million. Both estimations were high, according to a source close to the situation, who says the agreement is essentially a volume inventory buy that will include Instagram's current static promos as well as other emerging products.

Facebook-owned Instagram is expected to roll out video ads at some point, just as its parent will likely start featuring auto-play spots in users' news feeds relatively soon.

Omnicom, a major holding company that's merging with Publicis Groupe, literally has scores of big-brand clients, including Nissan, AT&T, Pepsi and Bud Light, so it's looking to establish a strong relationship with the growing mobile-social platform that now counts 150 million active users. 



Subscribe today!

To Read the Full Story Become an Adweek+ Subscriber

View Subscription Options

Already a member? Sign in