Creators can tell their stories, grow and increase their earnings with the new native affiliate tool that has been created by Instagram!
How?
According to the app, this tool will allow creators to find new things that are available for purchase and share them with their followers. They may also use the "view shop" option on their profile to create a digital storefront where they can promote products or collections that are already part of their affiliate partnerships and earn a commission on the sales they generate— The best of all?
All these would be available for purchase via Instagram Checkout whilst staying within the application.
In this way, creators will be able to link their shops to their personal profiles providing brands with a new form of collaboration and users will have the chance to shop directly from their favourite influencers!
When people come across an affiliate post, the words "eligible for commission" will display beneath the creator’s username, similar to how sponsored content labels look and the users will know that their purchases help support that creator.
→ ‘Instagram already tested with a small group of US-based creators and businesses including Benefit, Kopari, MAC, Pat McGrath Labs, and Sephora in the middle of 2021 and will expand to more partners & creators in the future!’
Why will this be helpful?
When tagging products, having a native affiliate tool related to direct purchases improves the creators' ability to prove their ROI and monitor the number of sales they generate. In general, the lines in proving sales have been blurred, as they are notoriously difficult to track throughout organic social media. Currently, both creators and companies can only see or collect organic data from customers who click on a tracked link (such as a link in their bio, swipe up, or Instagram shop link) - but as we all know, not everyone buys items this way. We can notice a product or item we like on an influencer's post, tap the photo to identify the brand, and then go to a website to look for the brand or product. This implies that the consumer proceeds with the purchase through Google's 'organic search' rather than social media & influencer’s posts.
By tracking who clicks on the product's creator's tag, Instagram's affiliate program should help them figure out what kind of content drives sales. They may also make the consumer experience easier by allowing them to shop directly from the photo when they tap on it.
How about brands? What does Instagram’s Affiliate Tool mean for them?
The specific tool creates a big opportunity for brands trying to boost sales on the platform, as affiliate marketing is frequently seen as a much safer investment and a reliable form of influencer marketing.
The affiliate marketing tool is the last step to a successful 3-sided social commerce marketplace:
There’s more…
This new tool, allows you to look for products in stores that are related to the items in the post. Instagram aims to be a marketplace for people to buy and sell things, and the visual search function could help them achieve that goal.
Visual search isn't a brand-new feature on the internet; Pinterest and a few other sites already offer it. It is one of the most efficient ways to shop online because it simplifies the process for users.
What is the Commission Rate for the Instagram Affiliate Tool?
Brands should note that Instagram charges a transaction fee of 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less.
The only concern is that all users’ information is handled by Instagram rather than the business directly, resulting in brands missing out on customer data (such as emails).
No need to panic though!
Instagram’s native e-commerce tools can help you out!
→ You can use a free link in the bio optimization tool, such as Linkin.bio.
→ Linkin.bio converts your whole Instagram feed into a clickable landing page that updates as new posts are shared.
In this way, you are driving traffic to your website and you don’t miss a thing!
Finally, we're looking forward to seeing what this new tool will bring to creators, once will be officially available in Cyprus!