Instagram tests ads in stores in the USA
Facebook subsidiary Instagram is testing a new advertising feature in the Instagram stores, reports TechCrunch. With "Ads in Instagram Shop," brands should be able to secure more reach, and Facebook itself should see additional advertising revenue. Tests have already started with selected partners in the U.S., and the feature is expected to be rolled out more widely and offered in other regions over the coming months.
Stores launched on Instagram in May 2020, reaching Instagram app users through businesses' profiles and promising a seamless shopping experience. While this didn't go down well with all users, not least because the Shops have supplanted Activities in the app's main menu. But it seems only logical that Facebook, which relies on advertising revenue, should now enable advertising here as well. After all, brands can hope that virtual storefront advertising will increase their reach among app shoppers.
Companies can choose between individual images and image carousels for their ads and compete for ad impressions in an auction model, as with other Facebook ad formats. The amount of advertising app users see in stores 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 react to this in order to find a sensible balance between ads and actual content.
Manageable start
Testing for the feature has started with a limited selection of U.S. advertisers covering some of the most popular Instagram 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 the U.S. in the coming months. (pte)
