Instagram Takes Another Step Toward E-Commerce

Has its eye on click-to-shop ads

In its slow but steady embrace of e-commerce, Instagram is running its first marketing campaigns that transform viewers into shoppers with a single click. Finally, retailers can link to product pages from their Instagram ads—a feature Banana Republic was among the first to employ—and still more sophisticated ads are in the works.

The new ads are part of a carefully managed rollout of better marketing tools on the Facebook-owned photo-sharing app, which is starting to offer the sort of products brands have been demanding, especially in view of the $200,000 many of them are shelling out.

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