With a following of 238.3 million followers on its own profile, Instagram, owned by Facebook FB, continues to soar upwards by releasing new features, bound to make millennial users happy.
According to TechCrunch, Instagram introduced the shoppable tag feature to 20 select partners back in 2016. When the feature was first introduced, the user would be able to click on the photo with the tag on it, which would lead them to the product they were searching for. Now, these shoppable tags have made it to Instagram Stories.
300 million people use Instagram stories every day, notes TechCrunch. This means that with the shoppable tag feature being tied in with Stories, users will be able to shop directly with a particular brand for a specific product that they see and like. With just one tap, consumers will be led to the page of the product, where they can instantly purchase it, if they want to.
In a study done by Statista, the majority of users who used Instagram daily were between the ages of 16-29. This means that most of the users are millennials who are heavily influenced by brands and the products they have.
Since Instagram’s initial launch, the platform has certainly evolved and changed. When scrolling through the app, consumers are confronted with ads, sponsored posts and now this feature. These sponsored posts are largely made by influencers, who now hold a large space within the Instagram community.
According to CBSNews, brands hire influencers and pay them to endorse their product or service within photos. Hence, with the shoppable tag feature, Instagram users will be able to buy the products that their favorite influencers also have, which in return is promoting the specific brand they are endorsing and its sales.
Influencers range from bloggers to YouTubers. They have created an image for themselves through Instagram and use the platform to reach their followers and increase brand awareness. CBS News created a list on the top 14 influencers on Instagram of 2018, with number one being Huda Kattan. Kattan is a beauty blogger and makeup artist with 23.4 million followers. The list also includes Lele Pons, Zach King, Lily Singh and Josh Otrovsky, just to name a few.
Not only do these influencers have a strong online presence, but they have appeared on television, are brand ambassadors, have been on magazine covers and wrote books.
For Instagram, Stories has the chance to become huge, benefitting influencers and everyday users alike. Even though it is a very simple addition to the app, the tool attracts a large audience, which could eventually increase sales for certain brands due to consumers’ response to the shoppable tags feature.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Facebook, Inc. (FB) : Free Stock Analysis Report
To read this article on Zacks.com click here.