Instagram and Omnicom announced a deal earlier this month worth a reported $40 million. The partnership will allow Omnicom’s media and creative agencies to use Instagram in their campaigns for clients including Pepsi, AT&T, Nissan and Bud Light. Until now, Instagram has experimented with advertising to a limited degree with select ads appearing in a fraction of user’s feeds. This new deal with Omnicom signifies a far greater focus on strategic advertising and long-term monetization for the company.
1. Instagram video ads are coming
So far, Instagram advertisements have been limited to still pictures, with brands including Michael Kors and Lexus releasing filtered-photo ads on the network. But soon, brands will be able to leverage Instagram’s 15-second video feature. Instagram’s director of market operations, Jim Squire, acknowledged this in a statement regarding the deal. Video is widely considered the premium online ad model, meaning Instagram will likely demand higher rates and therefore generate greater revenue by opening up its video feature to advertisers.
2. Not just anyone can advertise on Instagram
Nearly any company can advertise on Facebook, but Instagram will be significantly more selective about which companies can advertise and to which users.
“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 said.
So, don’t expect to see obscure products popping up on your Instagram feed like you may on Facebook. Only brands with a large target audience and widespread appeal are likely to appear for the time being.
3. Native advertising is here to stay
Advertisers are increasingly aware of the onslaught of content consumers are flooded with on their computers and mobile devices. The evolution of the industry has led to sponsored content and native advertising on websites and apps, which are more effective at capturing consumer attention. Deals like the one between Instagram and Omnicom demonstrate the collaborative future of platform and agency synergism in digital advertising.
4. Visual content is key
Perhaps the biggest takeaway from the Instagram-Omnicom deal is the influential growth of the “Visual Web.” A once text-centric Internet is transforming with a bevy of websites and apps focusing on images. Sites like Tumblr, Pinterest and Instagram have propelled the shift by allowing users to create, curate and share appealing content. Marketers and advertisers are adapting to this shift, just as the websites and social networks are developing new content monetization strategies. As native advertising and the Visual Web simultaneously continue to grow, we’re likely to see many more collaborative partnerships like the one between Instagram and Omnicom in the future.
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