Facebook strikes first advertising deal for Instagram

Facebook strikes first advertising deal for Instagram

Photosharing site Instagram has struck its first advertising deal with the largest advertising company in the world, which means that the 150 million users of the Facebook subsidiary will soon get advertisements.

50 million dollar deal

Facebook will receive 50 million dollars (36 million euro) through the deal with advertising company Omnicom, according to press agency Bloomberg. It was no secret Instagram would get ads, as it had already announced an ad-filled future for its mobile app in October 2013.

 

Omnicom's high-profile clients like Pepsi, AT&T, Bud Light and Nissan will offer promotional pictures and movies to the 150 million users of the social photo network. European advertisers will also get a shot at Instagram when Omnicom merges with French Publicis later this year.

 

The new merger, Publicis Omnicom Group, will become the world’s largest communication, pr and advertising firm, with an estimated 26.5 billion euro market value and a main office in the Netherlands.

 

Generate turnover through users

The advertising deal is part of Facebook’s strategy to generate more turnover through his mobile users, even though the company has to tread carefully. Director of marketing operations Jim Squires emphasizes that the deal will not create an avalanche of tacky ads.

 

“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,” he said on Advertising Age. Users of Instagram, purchased by Facebook in 2012 for 1 billion dollars, will not get the automated ads that often annoy Facebook users.

 

It remains to be seen whether Facebook has the same thing in mind for WhatsApp, the newest purchase for an astonishing 19 billion dollars. According to some, it is just a matter of time, while others point out that WhatsApp can move on without ads as it already generates money through subscriptions.

Questions or comments? Please feel free to contact the editors


Rakuten bridges gap to Japanese online consumer

30/10/2017

In Alibaba and Amazon’s shadow, Japanese Rakuten Ichiba is quickly developing. Several Western chains are using the platform to sell their products to Japanese online consumers.

Whole Foods contributes to Amazon's enormous turnover increase

27/10/2017

American Amazon’s third quarter turnover grew a lot once more, partially thanks to Whole Foods. This was the first time the chain’s turnover was added to Amazon’s overall turnover.

More than half of American families subscribed at Amazon

21/10/2017

An astonishing ninety million Americans have joined Amazon’s subscription program, Amazon Prime. Considering there are 126 million families in the United States, it is clear that Amazon has a tight grip on its home territory. What can Europe learn from this?

Safe.Shop is new global eCommerce trust mark

16/10/2017

Safe.Shop is the world’s first global eCommerce trust mark. Currently, only twelve countries signed up, but that number should increase in the future.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Back to top