Wednesday, March 20, 2019

Jury Out on Instagram's Giant Step in Online Retail


This week Instagram announced that it will, for the very first time, begin offering so-called “shoppable ads”: meaning that is users will be able to make purchases of some products directly within the app.

The Facebook-owned photo-sharing network unveiled a first wave of consumer facing brands which will feature their ads on the platform. The group of around 20 advertisers includes more established brands like Nike and Zara, as well as those launched more recently, such as Warby Parker and Outdoor voices.

This is a really interesting move by Instagram as it aims to show whether it can translate its success as a stylish but indirect promoter of cool brands into a direct purchase model.

Of course, the platform is already well known for enabling people to discover new brands and products through striking visuals and the endorsement of famous influencers. So, in many ways, this move toward direct e-commerce traffic is a natural progression.

But, will it work out?

In many ways, there is no digital parallel to what Instagram is trying to achieve with its new rollout. Traditional online models driven by search, and, of course, Amazon are driven by a more mundane marketing funnel: consumers generally purchase when they arrive knowing what they are looking for.

By contrast, rather like glitzy product placements in Hollywood blockbusters, Instagram’s new service will attract the impulse, whimsical buy – the purchase that the consumer did not necessarily set out to make, but which they couldn’t resist when seeing a young influencer wearing that new pair of sunglasses.

On the face of it, it may seem as though there is no downside to Instagram. But the big question for its top dogs who are putting their necks on the line is, will it dilute the brand and what Instagram is famous for.

Rather like the high end fashion magazine of years past which may have eschewed overt commercialization around its “editorial” content, Instagram has made its name as something that can be classy and visually striking. That may be put at risk with many of the goods now able to purchased directly just a click away. It could cheapen the look.

So, the jury will be out on the new strategy for some time to come.

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