Instagram is further investing in its e-commerce business, by expanding the possibilities within Instagram Shops, with the launch of a new advertising product: Ads in Instagram Shop. On the 9th of August, Instagram confirmed that the company has been testing a new ad format that showcases ads on its Shop tab. Ads formats include both the single image and carousel format option and will be shoppable.
As of now, only a selected number of US advertisers gain access at first including Away, Donny Davy, Boo Oh, Clare paint, JNJ Gifts, DEUX and Fenty Beauty. These brands are selected as they sell products that fall under popular categories Instagram users like to shop for, such as beauty, home décor, pet products and more.
Instagram has not yet announced an exact time frame for rolling out the ads more publicly, but states that the plan is to expand the new format to advertisers in other non-US markets over the upcoming months.
This latest update enhances the e-commerce potential Instagram has obtained with the launch of Instagram Shops last year to provide users with an online shopping destination with an integrated checkout experience in addition to following their favourite brands.
Like Instagram’s other advertising products, Ads in Instagram Shop is launching with an auction-based model. The ads will only show up on mobile, as the Instagram Shop tab is a mobile-only feature. However, how many ads individual users will see depend on how they use Instagram and how many users are shopping in the Instagram tab. The company plans to monitor consumer sentiment on this aspect, in order to balance ads and content.
This new planned e-commerce expansion was introduced by Instagram as the platform looks to grow in multiple spaces, particularly shopping. Last October, the company introduced shopping features through its Reels platform and live streams through IGTV. In 2019, Instagram also expanded their push into online shopping with a brand new augmented reality shopping feature that allows consumers to “try on” products digitally before buying them. With this new Spark AR integration, users are able to virtually “try on” products before making a purchase in the app.
The inclusion of ads on Instagram Shop could also streamline the process of product discovery for mobile marketers. The ease in which items can be browsed and passed around is one of Instagram’s main selling points to potential vendors.
Do you want to learn more about Instagram’s new updates and how they can help you achieve your digital marketing strategy? Contact us now or check out our Digital Ads page!