After adding ads to Reels, Instagram is looking to further monetize the app with ads in the shop tab, which has been launched on Tuesday for global audiences and businesses.
A result of months of testing, Instagram can now officially raise its revenue from businesses that want to sell more items to a larger group of audiences with the paid Shop ads. Shops was first unveiled in May 2020, as part of Facebook’s larger pivot toward e-commerce. The ‘Shop’ tab is a tab on the photo and video sharing app that lets users browse items such as clothes and beauty products and in some cases purchase the items directly within the Instagram app.
“With shops, we want to give people a place to experience the joy of shopping versus the chore of buying. Collections in shops let businesses customize the shopping experience and curate products into themes that tell their brand story,” Instagram had stated earlier.
Users can visit a shop from a business’ Instagram profile or through feed and Stories. Once they’re at the shop, people can browse products, explore collections, and purchase products through the in-app browser or without leaving the app from shops with checkout.
The company began beta testing the ads earlier this month with a few select advertisers, but the feature is now open to brands globally wherever Instagram Shop is available.