Instagram is adding more e-commerce support with ads in the Shop tab

Instagram is now testing ads in the Shop tab, TechCrunch first reported on Monday. The ads can include a single image or a carousel of images, and the test is currently only open to a handful of retailers. The ads are rolling out now to mobile users in the U.S.

Why we care

Ads in Instagram Shops may provide retailers with a new way to target audiences that are ready to shop. This is especially valuable as the industry moves away from cross-app tracking and third-party cookies, which may be less of an issue in this context since all of the user’s activity happens in the app.

More on the news

• Ads in Instagram Shops will launch with an auction-based model and the company plans to monitor consumer sentiment in order to balance content with ads, according to TechCrunch.
• Away, Boo Oh, Clare Paint, DEUX, Donni Davy, Fenty Beauty and JNJ Gifts are among the retailers participating in the test. The company has not yet released a timeline for when these ads will be available to more advertisers.
• The ads will expand to global markets in the coming months.
• Instagram launched the Shop tab in July 2020.

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