Instagram has inked its first major ad deal with an agency, and it's big.
The photo- and video-sharing site is rolling out a paid advertising program with a year-long commitment from Omnicom to spend up to $100 million, according to people familiar with the matter.
The arrangement means that users will start seeing ads in their streams from brands that work with Omnicom's media and creative agencies, including Omnicom Media Group, the media agency network that spearheaded the deal, and creative shops within the holding company like BBDO, DDB and TBWA/Chiat/Day. Omincom's media agency network houses PHD and OMD.
Omnicom and Facebook, which bought Instagram for $715 million in 2012, confirmed the partnership but declined to comment on its terms. Instagram said it has a community of 150 million active users, with more than 60% from outside the U.S., and 55 million photos loaded daily.