In its second-largest acquisition, Amazon buys the company for $970 million.
The social network will work with Publicis on data, visual storytelling on Instagram and video advertising.
Facebook has reached a deal with advertising company Publicis Groupe to co-create advertising products around data, video and images on both Facebook and Instagram, Facebook confirmed. Starcom MediaVest Group, a subsidiary of Publicis, led the deal.
"Agencies, brands, and Facebook all have one common goal: to make great ads and put them in front of the right people,” says Patrick Harris, director of global agency development at Facebook. “Our work with Publicis will center on bringing clients closer to our products, and creating new planning and measurement tools to make buying easier, more efficient, and ultimately prove out ROI.”
The deal includes three key parts, Facebook says: data access and integration, visual storytelling through Instagram and online video advertising.
The data portion of the deal includes a joint measurement task force between Facebook and Publicis to test which metrics are most meaningful beneficial? to advertisers? and further integrate Facebook’s user data with Starcom MediaVest Group’s advertising, media planning and advertising convergence modeling. What is advertising convergence modeling?
Facebook will provide creative consultation and development support for Instagram ads as part of the visual storytelling portion of the deal. The deal also gives Publicis clients access to Instagram’s ad platform. As part of the video portion of the deal, Facebook will work with Publicis to monitor its clients’ use of Facebook’s premium video advertising service.
Facebook bought Instagram in 2012 for $1 billion. A recent study from Forrester Research Inc. found consumers engaged with posts on Instagram at a much higher rate—4.21% of the time compared to 0.07% of the time on Facebook and 0.03% of the time on Twitter.
Publicis clients include several Top 500 e-retailers, including Best Buy Co. Inc., No. 15 on the 2014 Internet Retailer Top 500; Wal-Mart Stores Inc., No. 4; and the Carrefour Group, No. 19 in the 2013 Europe Top 500 Guide.
Twitter struck in April 2013 a similar deal with Starcom MediaVest Group.