Instagram signs first ad deal with Omnicon Group

Facebook-owned Instagram has reportedly signed a deal with top-tier advertising and marketing agency, five months after rolling out its first official ads on the photo and video-sharing service.

Advertising agency Omnicon Group, has more than 5,000 clients and with its one-year contract, it is expected to spend up to 100 million dollars on Instagram ads for its clients.

According to Cnet, after three years of abstaining from ads, Instagram launched ads in November with a sponsored photo from Michael Kors that was shown to US audiences, and later moved on with brands like Levi's and Ben and Jerry's, reaching more than 7 million people in just over a week.

Director of market operations at Instagram, Jim Squires said that it was an exciting new chapter and their teams were going to work hand in hand to develop and execute campaigns that provide people with amazing imagery, and drive meaningful business results for advertisers.

He further said that people would continue to see a limited number of beautiful, high-quality photos and videos from select brands who already have a strong presence on Instagram.

The report said that Instagram has always maintained that it aims to show members magazine-quality advertisements that they'll actually enjoy.