IS INSTAGRAM WORTH INVESTMENT FOR RETAILERS?Review & Preview
With recent studies suggesting that Instagram could make over $10bn in shopping revenues as early as 2021, the new checkout feature certainly seems like a promising mechanic for marketers who wish to further engage their audience and influence the consumer buying journey. Ultimately, they are closing the gap between content and transaction. Additionally, the beta brands who exclusively experienced checkout back in March 2019, have already reported values upwards of a billion dollars apiece. This again demonstrates strong returns on investment.
However, with this in mind, for brands to get the most from their influencer marketing campaigns across their multichannel strategies, they will need to focus on three key requirements:
- Working with true talent
- Ensure authenticity
- Intelligent use of data.
- Insta-shopping is fashion-centric at the moment. How can businesses in other retail sectors take advantage of this shopping platform in order to attract a core audience of Insta-fans and influencers alike?
The beta testing of Instagram checkout in the U.S certainly saw an uptake from fashion and beauty related brands, including Adidas, Dior, Kylie Cosmetics, MAC and Zara. However, as this natural evolution for brands being on Instagram continues to expand, we will see new verticals including FMCG brands optimise this new feature as this mechanic becomes invested within their influencer marketing campaigns. This interest will stem from the ability to demonstrate product sales and streamline the buying process.
In order for brands to gain both interest and action from their consumers, they will need to follow best practice to standout from growing competition. As such, they will need to renew their creative ideas when approaching influencer marketing campaigns to differentiate their products in-feed and ensure they promote high-quality and talent generated content.
- What other social media sites or apps provide shoppable technology for retailers and how do they compare to Instagram?
Other social media apps such as Facebook do indeed offer e-commerce experiences, but they are still in their nascency. WeChat is a good example of a more established and growing shoppable functionality, that is certainly one to watch. Withas many as one billion users opening accounts daily in the past year, it is used by both brands and people to keep in touch, but more importantly it’s regularly used for transactions. If someone books a taxi or buys a coffee in China, it’s likely that they will use WeChat to do so. Likewise, with WeChat launching a new shopping function that lets people shop on JD.com with just a few taps earlier this year, it’s most definitely set for further expansion.