Instagram has launched Ads in Instagram Shop, an advertising product that further invests in its ecommerce business, Instagram Shops. The company said it is currently testing the new format with selected U.S.-based marketers ahead of expanding to other markets in the coming months.As part of an overall effort by Facebook to make its social media platforms more than just a place for friends to connect and follow their favorite brands, Instagram Shops was introduced last year. It is now an online shopping destination that integrates with the checkout process. This type of initiative is also compatible with Facebook's advertising model. Brands looking to connect to consumers could pay for increased reach.The company states that Ads in Instagram Shop will launch using an auction-based model. Because the Instagram Shop tab is mobile-only, ads will not appear on mobile. The number of ads a consumer sees will depend on their Instagram usage and the amount of people shopping in the Instagram Shop tab. To balance content and ads, the company will monitor consumer sentiment.Instagram has partnered with a few U.S. advertisers to test the product and give feedback. These include Away, Donny Davy and Boo Oh as well as Clare paint, JNJ Gifts and DEUX. These brands include some of the most popular products that Instagram users love to shop for such as beauty, home decor, pet products, and travel.Although the company has not yet revealed a timeframe for the rollout of the ads, it stated that the company plans to make the new format available to advertisers in non-U.S. markets within the next few months.In recent years, the Instagram Shop tab has been a controversial addition to the app. It replaced the Activity tab (heart button), in the bottom navigation row. This change made the app seem more commercially driven and alienated some users. The creative community is considering its options today as Instagram moves further away from its photo-sharing roots via new additions like its TikTok clone Reels.
