San Francisco, CA, United States (4E) – Facebook’s Instagram signed a deal worth $50 million with major ad agency Omnicom, according to several credible sources. Instagram users will soon see promotional videos and pictures on their pages. More details will be revealed in the upcoming weeks.
Facebook acquired Instagram for an estimated $700 million two years ago. The deal is part of Facebook chief executive officer Mark Zuckerberg’s plan to drive more mobile sales. Mobile revenue makes up half of advertising revenue. Top brands like Lexus have ads currently appearing on Facebook. The largest social media website on the world recently purchased messenger WhatsApp for $19 billion.
“Omnicom shares our passion for and understanding of the mobile Instagram community. Along with their clients, they’ll help to continue to set a high bar for creative work that inspires people,” Instagram director of market operations Jim Squires said in a statement, via Bloomberg.
Even with partnering with Omnicom, Instagram’s photo-sharing service.
“This doesn’t change our advertising strategy moving forward — 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,” Squires added.