The ‘Gram is Open for Business
Folks, this is big. Real big. Instagram just officially added a payments option inside the app. This has been rumored for a while, and its finally come to fruition. If you head over to the Settings section of the app and scroll down, you will most likely find a “Payments” tab in which you can enter your credit card information to prepare to shop.
Old version (required to click through to website to purchase):
New version (complete payment within Instagram):
Why is this huge?! There are many reasons…
1) As marketers, we are constantly trying to optimize campaigns for peak conversion. This includes endlessly testing landing page design. With the new Instagram payments feature, you don’t have to worry about this. Instagram is now the landing page (if desired).
2) Related to the point above, expect metrics across the board to improve. If users don’t have to leave the app to buy what they want, drop-off will decrease and conversions will increase. Users won’t have to get up and grab their credit card to type in their info and checkout anymore, since it’ll already be saved in the app, so conversions will increase. Instagram’s built in trust is higher than your brand’s – yet another improvement.
3) Expect Return on Ad Spend (ROAS) and ROI to increase for all campaigns. As an agency, our clients consistently achieve 5X-20X on the ad spend. We’re excited to see this number increase even further in the near future.
This is a natural extension of Instagram Shoppable Tags, which debuted about two years ago. If Facebook truly wants to cut down on advertising due to the recent Cambridge Analytica fiasco, getting into payments (and taking a cut in the future) is a great way to increase revenue.
We will keep you updated as the feature gets rolled out to more advertisers.