Instagram is testing ads in stores in the U.S.

Facebook subsidiary Instagram is testing a new advertising feature in the Instagram shops, reports TechCrunch. With "Ads in Instagram Shop" brands should be able to secure more reach, for Facebook itself additional advertising revenue will probably jump out. The tests have already started with selected partners in the US, in the course of the coming months, the feature should be offered more widely and also in other regions.

(Image: Facebook)

Shops launched on Instagram in May 2020, reaching users of the Instagram app through businesses' profiles, promising a seamless shopping experience. While this hasn't gone down well with all users, not least as Shops have crowded out Activities in the app's main menu. But it seems only logical that Facebook, which relies on advertising revenue, should now allow advertising here too. After all, brands can hope that virtual storefront advertising will increase their reach among app shoppers.

Companies can choose between single images and image carousels for their ads and, as with other Facebook ad formats, compete for ad impressions in an auction model. The amount of advertising app users see in shops will depend on both the usage habits of individual users and the number of shoppers in the corresponding Instagram tab. According to the report, the company wants to track how users respond in order to find a sensible balance between ads and actual content.

Manageable start

Testing for the feature has kicked off with a limited selection of US advertisers covering some of Instagram's most popular categories. These include luggage and accessories retailer Away and Rihanna's Fenty Beauty. These advertisers are expected to provide feedback, paving the way for a wider rollout of the feature. A specific timeline is not yet known, but the ad format is expected to be made available to companies outside of the US in the coming months. (pte)

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