It only seem like a few weeks back that we were reportÂing on Instagram’s deciÂsion to proÂceed with its careÂfulÂly toutÂed softÂly, softÂly approach to mobile adverÂtisÂing; and this month it’s takÂen the process a big step forÂward by signÂing its first deal with an ad agency: New York-headÂquarÂtered giant, Omnicom.
You don’t need to be a vetÂerÂan of media jobs in mobile adverÂtisÂing agenÂcies to appreÂciÂate that a $100 milÂlion deal is pretÂty sizeÂable. The many brands workÂing with the media and creÂative agenÂcies conÂstiÂtutÂing the OmniÂcom group can now access InstaÂgram as an extra mediÂum for their adverÂtisÂing camÂpaigns, at least for the next year, which is how long the deal curÂrentÂly lasts for.
TestÂing the waters
Much of the last year was spent by InstaÂgram tryÂing out adverÂtisÂing from brands like Levi’s, Lexus, Ben & Jerry’s, GenÂerÂal ElecÂtric and Michael Kors. Again, you don’t need to be a genius in the world of mobile adverÂtisÂing to figÂure out why it took the step: eMarketer’s figÂures show in 2013 that the globÂal mobile adverÂtisÂing marÂket expandÂed by 105.9 perÂcent, skyÂrockÂetÂing from a size of $8.8 bilÂlion in 2012 to $18.8 milÂlion. The growth of the U.S. mobile ad marÂket was even more specÂtacÂuÂlar at 122 perÂcent (takÂing it to $9.68 million).
The OmniÂcom deal will see ads, from staÂtÂic phoÂtos to videos, added into InstaÂgram users’ feeds. In line with Instagram’s promise not to introÂduce obtruÂsive adverÂtisÂing, they’ll be meticÂuÂlousÂly selectÂed and manÂuÂalÂly (rather than autoÂmatÂiÂcalÂly) bought and curatÂed. It’s likeÂly that the video ads will prove the most lucraÂtive: the mediÂum has long been known to comÂmand the highÂest levÂels of engageÂment and monÂeÂtiÂzaÂtion. That’s probÂaÂbly why they’ve been popÂping up with gusÂto on just about all digÂiÂtal entiÂties supÂportÂing video, from news sources to YouTube.
UnobÂtruÂsive progress?
InstaÂgram is insistÂing that the ads it will perÂmit will be fulÂly in keepÂing with the qualÂiÂty of its user-genÂerÂatÂed conÂtent. The jury, howÂevÂer, is still out on whether users will grow to love beauÂtiÂful artisÂtic ad creÂations or vote with their feet and use anothÂer platÂform for sharÂing their content.
Ad partÂnerÂships, InstaÂgram mainÂtains, will be held down to a small numÂber of select partÂners. Rumor has it that anothÂer giant, PubÂliÂcis Groupe’s StarÂcom MediÂaVest, is in talks to become one of them.