Instagram announced today significant planned developments in tying brand presence to commerce: New ads will support links to buy, sign up for notifications, and find more information about a brand. In addition to the new buttons, Instagram will be using more Facebook data to help advertisers target ad viewers.

This is a slight change from the link and commerce-free environment Instagram has strived to create. However, brands had installed workarounds to make up for the lack of a commerce option on the platform. For example, Selfridges, MyTheresa, Moda Operandi, ASOS and a total of 30 retailers partnered with Instagram commerce solution LikeToKnow.It last month.

L2, who releases an annual Instagram study, believes brands holding their breath for access to Instagram e-commerce are missing the big picture. The real opportunity lies in incorporating Instagram onto product pages, rather than vice versa. L2 findings provide evidence that those who interact with a piece of user-generated content featuring their product on the path to purchase are more likely to purchase an item. The boost in conversion can reach up to 9.6%.

instagram-2015-impact-of-ugc-on-e-commerce-conversion-ratesThe impact of user-generated content on the path to purchase is highest for apparel brands, followed by Watches & Jewelry.


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