Instagram Check-out: What you should know

2nd May, 2019

The race has started. Even if Facebook has 1.5 billion daily active users and Instagram 1 billion monthly active users, the fashion and beauty industries have found these lasts years that the power of Instagram relies not only in it’s visual and organic communication display, but also in the purchase potential and direct ROI that brands can see from their campaigns. But who is the audience on each platform and what are the differences?

Instagram is driven mainly by teenagers or young adults. In fact, 90% of Instagram users are below the age of 35. This implies that products and services targeted to younger generations will work well here and that is a major reason why Instagram is flooded with pages concerned with beauty, fitness, food, traveling.

Facebook is also populated by millennials and youngsters. It is used popularly by people beyond the age of 65 but don’t let this lead you into thinking that Facebook doesn’t have a young populace. 82% of internet users between the age of 18-29 have a Facebook account compared to 59% of Instagram users. Facebook is mainly used for lots of corporate advertising, surveys, marketing, political posts. For significant issues in the need of long discussions or debates, Facebook is your platform.

This being said, Instagram announced on mid-May they would be launching In-App purchase option, so the users won’t have to exit the platform and they can continue browsing easily. A survey showed that nearly 70% of the 1 billion users of Instagram logs in to interact with celebrities and influencers. Starting May 9, about 50 influencers, designers and media titles, as well as publishers like Vogue and Hypebeast, will gain access to Instagram Checkout, a feature introduced last month that makes it possible for users to buy products tagged in posts and stories without leaving the platform. For now, this version is limited to the US.

Some key facts:

  • Checkout, sales happen directly on Instagram, with the platform taking an undisclosed percentage on each sale.
  • Brands grant permission to influencers to add the shoppable tag feature to their own images and Stories.
  • As of now, the influencer does not receive a percentage of the revenue from the sale.
  • Checkout’s limitations – users can only buy one item at a time – are by design, so the company can see how it performs and how it exists within the wider Instagram ecosystem.

Overall, this shows how ambitious Instagram is about its commercial goals, having evolved from a mere post-and-share app to a giant that sets the game for a whole new way of consuming online.

Let’s be honest: there is a world on Instagram where a lot of shopping will happen from other people and not just from brands. People connect to people way better than with a logo or a fancy product. And this is what Instagram has tapped into so well these last years.

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