Instagram Lets Brands Create Ads With Product Tags From Scratch

Facebook Shops can now offer discounts on individual products

Teen apparel retailer Hollister tested Instagram ads with product tags Hollister/Facebook

Saying that a recent study by research arm Facebook IQ found that 78% of online purchases are occurring n mobile, Facebook detailed two feature aimed at enabling retailers to capitalize on that trend during the upcoming holiday shopping season.

Businesses can now create Instagram ads with product tags from scratch in Ads Manager, enabling them to use creative and copy that is more commercials that traditional organic posts.

Product tags can be used on photo, video and carousel ads.

Instagram began testing the ability for advertisers to run shopping posts as ads in September 2019.

New shopping engagement custom audiences enable brands to reach people who already showed interest in their product or brand through actions including saving a product, viewing an Instagram Shop or initiating a purchase.

And shopping lookalike audiences enable brands to reach potential shoppers with similar interests to their existing customers.

Facebook said Korean skincare brand Dear, Klairs ran an Instagram campaign with a combination of ads with product tags and branded content ads, generating 1.8 times higher return on ad spend, a 45% drop in cost per purchase, a 42% drop in cost per add to cart and a 41% rise in people reached.

And teen apparel retailer Hollister compared running ads with product tags targeting shopping lookalike audiences with its usual method of prospecting audiences, generating click-through rates 32% higher and cost per click 47% lower.

Hollister/Facebook

Facebook Shops in the U.S. can now place individual products on sale and create offers that can either be automatically applied or redeemed through promo codes.

Banners can also be added to Shops in order to alert customers to the discounts.

Facebook

Facebook wrote in a blog post Wednesday, “As we enter a holiday season like we’ve never seen before, we’re announcing new products that can help your business adapt to the pandemic, get on board with the accelerated shift to online shopping and make the most of such an important season.”


david.cohen@adweek.com David Cohen is editor of Adweek's Social Pro Daily.
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