Brands can already add product tags to Instagram posts. But now they can add them to Instagram ads, too. When clicked on, these tags allow people to see product details, add it to a wish list, or make a purchase. Ads with product tags can be created in Ads Manager, or by promoting existing shoppable posts.
Several advertisers, including Hollister and Korean skincare brand Dear, Klairs have been testing the feature over the past year. In its campaign with product-tagged ads, Dear Klairs saw a 45% decrease in cost per purchase and a 42% reduction in cost per add to cart. Does that sound bad? It’s not. Saving money on transaction costs is one of the best ways to grow a business in an unstable economy.
Shoppable ads were introduced alongside new audience tools, including Shopping Engagement Custom Audiences. This custom audience lets brands target people who have previously shown an interest in their content. Shopping Lookalike Audiences target people with similar profiles to a brand’s existing customers.
Small businesses will have access to training, support, and insights on these features and more through Facebook and Instagram’s Seasons of Support initiative.