Instagram: Social commerce data

“Instagram isn’t abandoning commerce,” said Jasmine Enberg, principal analyst at Insider Intelligence. “The pandemic-related influx of new social buyers is largely over, except on TikTok, and given all of the experiments in the space over the past two years, it was inevitable that Instagram and others would sunset some projects. The death of the Shop tab shouldn’t be too much of a surprise, in part because Instagram has started adding recommended products to the feed”.

“Shopping remains an important engagement driver on Instagram, and commerce sales from the social platforms will continue to rise. But shopping was originally intended as a way for Instagram to keep people on its platform and to collect more data it could use to sell ads, rather than a primary revenue driver. By refocusing its commerce efforts on integrating shopping into the main experience, rather than focusing on a singular shopping destination like the Shop tab, Instagram is going back to basics.”

“Even so, I believe Instagram will keep many of its direct shopping capabilities because it needs people to keep using its tools if it wants shopping to bolster its ad business. Some creator commerce initiatives may be on the chopping block, however, as Instagram promotes its Creator Marketplace as its primary creator monetization tool. Brands can also expect increased focus on shopping around Reels, as Instagram works to build out that business.”

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Insider Intelligence forecasts and estimates are based on our proprietary analysis, and include both quantitative and qualitative data curated from public companies, government agencies, research and media firms, and interviews with expert executives in relevant fields. We regularly re-evaluate available data to ensure our forecasts reflect the latest business and economic  developments and trends.