The importance of Instagram in E-commerce

The importance of Instagram in E-commerce

October 16, 2017 10:41 am / by

More popular than Twitter that only has 313 million monthly active users, Instagram now has more than 600 million users. This is a huge environment to get customer database and rocket your profit. And your big question is how to do it.
The business case for Instagram e-commerce is strong. Not only does Instagram’s engagement demolish Twitter, Pinterest, Google+, and LinkedIn, but, for brands, it even outperforms Facebook by a factor of 10.
This is the reason why many famous brands are always active on Instagram:

The “Link Problem”

Marketing on Instagram has long been a big concern of getting the followers on Instagram back to your website. Since user can’t add clickable links to your posts, brands have to direct Instagram follows to the link in their bio instead—and continuously update that link as they post new products. It sounds like that Instagram is much disadvantageous to sale.

In fact, Instagram was the most successful source of traffic in one of our recent case studies. All that traffic came from the same “link in bio”. But here’s the really exciting part. You can now include links to your website in Instagram posts—if you advertise. In the example below, the “Shop Now” button takes readers directly to a product page.

 

importance of Instagram in E-commerce

 

Product Tagging

Instagram now has a partnership with Shopify to take things a step further and offer easy product tagging in 2017. This is a new way to sell directly on Instagram, without your customers ever having to leave the app. Tagging products in Instagram photos will provide a seamless customer checkout experience. With product tagging, e-commerce brands will have even more reason to start advertising on Instagram.

Let’s take some minutes to Introduce Instagram Advertising

Instagram advertising is still quite new. Before recently, though, there was a workaround: sponsored posts.
In the past, if you wanted to advertise on Instagram, you had to do it by negotiating privately with Instagram influencers and asking them to promote your brand on their account. While this can be a very effective way to drive traffic and sales, it has limitations:
– Often expensive
– Requires reaching out and negotiating
– No accountability or recourse if they don’t deliver
– Limited audience targeting
Sponsored posts still have their place. Getting someone else to promote your product carries solid benefits. It provides social proof, adds a cool factor to your business.  Plus, while you don’t have a lot of control over the influencer audience, at least you don’t have to make any decisions about who to target. Sponsored posts are still a great way to do influencer outreach, especially if you sell a product.

However, there’s now a new way.

1. How Instagram Advertising Works

Since late 2015, anyone can now create Instagram ads through Facebook’s self-serve advertising platform. With it, you have total control over your ads, how they appear, and who sees them. Unlike sponsored posts, your ads get posted directly from your own account. The advantages to the new method include:
– Scalable pricing
– Self-serve, instant
– Robust reporting, you’re in control
– Highly-refined audience targeting
What’s more, with Instagram’s move away from a chronological feed in favor of a curated feed, you never know how many of your followers will see your posts.

2. Types of Ads

You can now run four different types of ads on Instagram.
– Photo Ads — One simple photo in landscape or square format.
– Video Ads — Videos can be up to 60 seconds long in landscape or square format.
– Carousel Ads — Include up to 4 more photos people can view by swiping.
– Stories Ads — Advertise on Instagram stories with the photo or video content.

3. Campaign Objectives

Instagram Ads offers several campaign objectives. These are potential goals for your campaign that you select from a list. Don’t neglect this choice—it will influence how your ads are optimized and how you pay for them. For example, if your goal is to get people to watch your video, you probably don’t care how people click on your link.
You may already be familiar with campaign objectives from creating Facebook ads. Options include:
– Awareness — Drive awareness of your business, product, app or service.
– Reach
– Reach & Frequency
– Brand Awareness
– Local Awareness
– Consideration — Have potential customers learn more about your products or services.
– Website Clicks
– Video Views
– Reach & Frequency
– Conversion — Increase product sales, mobile app downloads, even visitors to your store.
– Website Conversions
– Dynamic Ads on Instagram
– Mobile App Installs
– Mobile App Engagement

4. Targeting Options

Instagram ads have all the same targeting options as Facebook ads. These include targeting based on location, demographics, interests, behavior, lookalike audiences, and automated targeting (let Facebook decide).
Even better, if you have Custom Audiences, you can target them on Instagram. Custom Audiences are groups people who have already connected with your brand in some way. This could be by visiting your website, engaging with your posts on Facebook, using your app, or by sharing their contact info with you.

If you’re interested in reading more about how to Build Instagram Marketing Strategy, we’ve got that covered too!

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