33% of Users on Instagram Directly Buy from Ads

Brief

  • Close to 60% of users on Instagram have followed a brand after seeing an ad they find appealing in Stories of the feed, going by a study by VidMob.
  • Over 33% of the respondents admitted to buying something from an ad on the platform. Gen Z had the highest tendency to purchase through ads. Women between 35 and 45 showed the lowest tendency to shop that way.
  • Of shoppers on Instagram, men were 10% more likely to make purchases through the app compared to women. 75% of men and 81% of women said they had made purchases from brands they didn’t know before. VidMob commissioned mFour to survey 1000 smartphone users between 16 and 45 years to come up with the findings.

Insight

VidMob’s survey indicates that Instagram’s shoppable ads are earning the platform a steady rate of direct sales for the advertiser, although it is still unclear what the response rates are. According to the findings, Instagram is used in product discovery, more so for beauty and fashion products among females and tech goods for male shoppers. 40% of people who see a product on their feed will research further within the app while 60% research on other websites and apps, showing that users are a little wary of buying on the platform.

Findings support other research that revealed 34% of U.S. internet users to make purchases through social media. Social media driven by e-commerce is not yet making a dent, but it is expected to grow in the years to come as consumers become comfortable with the medium and as platforms sophisticate their shopping features.

That social shopping is growing indicates that DTC brands likely benefit from Instagram’s push into commerce. The efforts include a special account introduced in May called @shop. The account brings together posts from merchants selling in the app. In March, the platform rolled out a checkout feature with 23 brands in the U.S. to let shoppers pay for products without having to leave the app. The account was later extended to 55 creators and five publishers to test it. Last year, Instagram introduced a shopping channel in its Explore tab to Stories. It also added a collection tab that lets users save products tagged in posts, shoppable ads, and Stories on business pages.

Facebook, Instagram’s parent company, has pushed further into commerce to diversify its ad sales. Almost all the sales the company makes come from digital ads, but growth is set to drop to 8% in four years according to forecasts by eMarketer. Google and Facebook need to bolster their revenue as retailers like Target, Walmart, and Amazon develop their networks that blend direct sales and advertising. Amazon is expanding its influencer commerce efforts with a program that will let tastemakers open storefronts to sell curated products.

Credit: Mobile Marketer

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