Instagram is ready to advertise with the big companies.
Following a test run with ten different advertisers last year, the site, owned by Facebook, has begun pitching new Instagram ads with CPM’s that could run a pretty steep price – anywhere from six to seven digits, depending on both reach and frequency.
One executive with the company stated that a month-long purchase could run as high as $500,000, while another stated that a similar period of time could run double that at $1 million. Another chimed in that the rates could go anywhere between $350,000 to $1 million, although no range has been permanently set just yet.
CPM’s with the program will be based on factors such as targeting (including age and gender perimeters), as well as reach and frequency.
Instagram didn’t make any official statements on pricing, although several companies are already interested, including Taco Bell, who has begun to use Instagram to showcase its new breakfast menu.
Source: AdAge
