Digital Advertising is booming, in the first half of 2016 digital advertising grew to a $32 billion industry. This is a 19% increase from last year’s $27.5 billion this is because of search and mobile advertising. Companies are finding newer and more creative ways to get their advertisements across.
Instagram is one of the companies that is looking for new ways to advertise. Instagram is trying out a new thing where they are letting brands test taggable products that just by clicking on the product people will be able to directly be connected to buy the product. This may not sound like a big deal but to girls who love to shop this can be a big help. If Instagram actually launches this new feature it could change how clothing brands post on Instagram. Before when the brand would post a picture of its clothing, the shopper would have to go to the Instagram profile and click on the link and then go look through the clothing items until they found the item they saw in the picture. This is a lot of effort and some shopper can even get discouraged. With this new feature will make it way easier for shoppers to click on the tag and be brought directly to the item on the website making it way more convenient to purchase things. This feature will be tested with brands like Kate Spade and J. Crew.
This form of digital advertising is another way for Instagram to make money. If these buyable tags work then Instagram can charge brands in order to promote those tags. This will help the brands make money too because it makes it easier for shoppers to access the products they see in pictures and does require people to take the effort to go to a brands Instagram profile.