Instagram cashes in with ads

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Social media dominates our everyday life. We always check on our phones or computers for news and what is happening with our friends. Recently, Facebook and Twitter have gone public and made huge headlines in the news. Instagram just landed a deal with Omnicom, a global advertising and communication holding company, up to $100 million over the next year. Instagram users will now receive streamed advertisements from brands that work with Omnicom’s media and creative agencies.

Instagram’s rise in popularity is generating a nice platform for advertising as more than 150 million users are active on the app. The blog on their website is sharing the news also with their members about the changes coming and keeping them engaged in the process.

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Instagram is making a deal with Omnicom months after companies like General Electric and Levi’s showed sponsored posts on the app. This also helps Facebook as they own Instagram. The ad’s on Instagram so far have only used people’s Facebook profiles to use their age and gender for a target audience. As more and more businesses start using the mobile platform, Instagram will work with Omnicom to get better at reaching the audiences for each ad. Daryl Simm, CEO of Omnicom Media Group said,

“This is another example of media becoming the message.”

I really liked the quote that Simm uses and it applies to a lot that we’ve learned. It shows how digital storytelling is being applied in the real world to get a brand’s name out there. Technology is advanced and companies are looking to media to promote themselves. There are constant ads on Youtube that we have to see and Facebook also uses your search history to appeal to certain brands. The advertisements you see will be based on what you’re interests are and adapts to it. Instagram is taking this approach and fully believes in it. Jim Squires, director of market operations at Instagram said,

“Our teams are going to work hand in hand to develop and execute campaigns that provide people with amazing imagery – and drive meaningful business results for advertisers.”

It’s important to notice that he used the phrase, meaningful business as a goal. As mentioned with Youtube ads, many of us don’t like them and skip them to watch our video. Our culture views ads as a nuisance and I don’t believe it has a great effect on the viewer. There was a lot of argument about Instagram now using ads and users didn’t like it.

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I don’t like ads either and although Instagram will try its best to personalize the ads, I think it will be harder than they think. People decide if they like an advertisement in a split-second and if they’re not interested then it’s a loss. The companies who use Instagram will need to have the right videos or pictures in gauge peoples interests. In the end, the social media companies are making these deals for obvious financial reasons but may lose some users in the process.

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2 thoughts on “Instagram cashes in with ads

  1. I haven’t seen much of the Instagram ads since they announced they would be using them. But I am happy that they are almost seamlessly integrated with the feed so it’s not about taking extra time to watch a video or a pop-up of some sort. I think it’s fair that Instagram needs to make money in some sort of way and this deal with Omnicom should help them out.

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  2. I haven’t seen much advertisement on Instagram either, however, I agree I am happy they are not pop ups or that they get in the way of the instagram experience, because most of the time when ads are like that I stop using the App. Advertisement is obviously necessary for apps and social medias, but there comes a point when they start to do more harm than good.

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