Instagram recently introduced new e-commerce feature – Collection Ads, a format that combines videos and product catalogs. At the moment, you cannot purchase any products from within the Instagram app. With this step, Instagram aims to support sales in e-commerce.
The fashion and cosmetic brands Birchbox and Revolve are the first ones to test Instagram Collections. Fashion and beauty are categories with a very strong position in terms of sharing content and size of fan base. According to Instagram, fashion accounts are followed by around 200 million people.
Collection Ads have been available on Facebook for a long time now. On Instagram, however, it has some improvements to its original version as Instagram is becoming more important part of Facebook’s business and is building a very promising position in the future as well. Facebook wants to give advertisers the opportunity to easily spread the campaigns from one platform to another, directing advertisers to all of its platforms.
E-commerce is, on the other hand, a great opportunity for Instagram. There is also a competitive rivalry with Snapchat, because both platforms offer features that link outside the app, and both are introducing features that support in-app purchases. Snapchat has already introduced its first store in SnapStore in the beginning of February.
Collection ads are now in the testing phase and are only available to limited number of advertisers. Within a few months it should be available to everyone.