Instagram Lands HUGE $US100 Million Ad Deal

Instagram Event 1 Kevin SystromNicholas CarlsonInstagram co-founder Kevin Systrom.

Instagram has nabbed an advertising commitment of up to $US100 million over the next year from agency holding company Omnicom, according to Ad Age.

The deal is a major validation of Instagram as an advertising platform just four months after the photo-sharing network ran its first sponsored post from Michael Kors.

It also help improve the quality of Instagram’s advertising offerings because Omnicom will work with it to develop its targeting and measurement capabilities.

In Instagram’s first round of ad campaigns from the likes of Levi’s and Ben & Jerry’s, brands were only able to target users based on age and gender taken from their Facebook profiles.

The deal comes at a time when there have been rumblings about brands souring on Instagram’s parent company, Facebook, after it tweaked its newsfeed algorithm in a way that made it significantly harder for brands to reach the people who follow them without paying to promote their posts.

According to Ad Age, Instagram is also exploring a deal with a unit of the ad agency holding company Publicis Groupe, which is planning to merge with Omnicom.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.