Businesses can now create Instagram ads with Product Tags on photo, video and carousel ads from scratch in the platform’s Ads Manager.
In addition to the new ad format, Instagram has also introduced new shopping engagement custom audiences and shopping lookalike audiences, enabling brands to reach potential shoppers with similar interests to their existing customers or those who have already shown interest in their products.
Facebook said Korean skincare brand Dear, Klairs ran an Instagram campaign with a combination of ads with product tags and branded content ads, generating 1.8 times higher return on ad spend, a 45% drop in cost per purchase, a 42% drop in cost per add to cart and a 41% rise in people reached.
Facebook Shops in the U.S. can now place individual products on sale and create offers that can either be automatically applied or redeemed through promo codes.
Banners can also be added to Shops in order to alert customers to the discounts.