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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.