Instagram is now a Facebook answer on Amazon. Before Intagrammers are interested in buying a product from the retailer, they can now shop directly from the app. But how will this change the social strategies of direct consumer brands, one of the main groups that rely on the Instagram for amplification, and can they afford not to take advantage of this last feature?
Instagram has long been tempted by DTCs. Provides great access and a platform to acquire ready-made customers, it is not hard to know why this is where many startups begin to advertise their business. Shakeable then comes Instagram. Grand Prix. Intagrammers do not even have to close the app to access my site and buy my stuff. In a few clicks, they move from seeing my ad, to being on my site, to buying my product. I get the money – and perhaps most importantly startup – data related to my client. Some of these funds were recovered in Instagram ads, and the cycle started to increase, making DTCs richer, in terms of money and data.
So this latest development, which allows users to buy from brands within the Instagram application, can be considered as the end of the honeymoon period. As a DTC brand, I still make a profit from the app, but the level of accuracy I will return to customer data has dropped significantly, with Instagram keeping that under wrap. DTCs are undoubtedly in worse shape than before this news. What kind of brands will enter the new feature?
The data is great, but having a full understanding of who your customer is is a luxury that many smaller brands can not always afford. The new Instagram feature allows these brands to sell on Instagram, take the rewards that come with them, or not sell on Instagram, and get more data, but less money. As a small brand looking to expand, data is important, but money is paying bills, so they'll stick to Instagram as a sales platform. However, the larger DTC, which looks to develop its products further by understanding who its audience is completely looking for, may look for additional sales and therefore look to sell through its own channels, such as applications and websites instead.
DTCs with a target audience of milliseconds
Even for the most established DTC centers whose data are estimated, if your target audience is significantly larger than the 1000, a bold decision will be required to leave Instagram. Chances are, your competitors will stay there, so even without running data, there may be a cost to stay away from the channel in terms of customers who have lost to competitors.
Those who try to kick Amazon usually
As a sales channel, Amazon will continue to control the advent, even with this launch. However, the payment for Amazon is a hard drive to swallow the DTC. Your product is easily lost in a sea of other products, which means that detection levels can be very low. Instagram got one on Amazon here, where brands make a great discovery, and show their ads to customers who will be dealing with your brand. Brands that seek to reduce their dependence on Amazon, and get more bang for their profit, might consider moving to Instagram. Whether this is a wise decision remains to be seen. DTCs may get greater detection on an Instagram, but as far as the amount of data you get, it looks like it's coming out of the pan into the fire.
The new feature will undoubtedly be drawn into the DTCs, but those who participate should be cautious. The strength of DTC marks lies in their ability to understand exactly who they are and what they want through excellence in data, and to develop their offerings accordingly. By relying on Instagram and Amazon as a sales channel, you limit your ability to do so. There is no ignoring the size that Instagram can offer, but the DTC wise brand will look to increase investment in its own sales channels, if long-term development, not short-term sales increase, is its primary goal.