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Meta Claims Instagram's New Feature Boosts Sales 10%+


Meta Claims Instagram’s New Feature Boosts Sales 10%+ 

Meta has rolled out a new advertising feature on Instagram called “Ads with Promo Codes” globally, providing brands with a novel way to drive sales directly through the platform, the company announced. The option allows advertisers to include promotional codes in their ad captions that customers can apply at checkout.

The launch marks a significant step towards a more integrated social media shopping experience. Promo codes have long been a staple marketing tactic, but their incorporation into Instagram ads streamlines the path from discovery to purchase. 

Users can now go directly from viewing an ad to checking out with a discount, without having to remember codes or search for them on a brand’s website.

For brands, the new ad format provides an easier way to track sales conversions from Instagram-promoted posts. Redemption data on unique promo codes gives clear insights into how effectively ads are driving real purchases. This enhanced attribution can help brands optimize their Instagram advertising spending and strategies.

Meta has been experimenting with linking online and offline shopping behaviors for years through methods like QR codes and barcodes on Facebook and Instagram. “Ads with Promo Codes” represents the next evolution by making discount codes shoppable within the IG feed itself.

The social media giant cites promising results from tests of the promo code ad format. “Advertisers who used this feature had a 9.1% median reduction in cost per purchase in their campaigns and a 10.1% median increase in conversions,” Meta said in an announcement.

While promo code ads are already available on Facebook in certain regions, the Instagram launch opens the door to the app’s highly commercialized audience of over 1 billion monthly active users. The new ad capability seems well-timed to the rise of social commerce and the prominence of influencer marketing on Instagram.

From the consumer perspective, “Ads with Promo Codes” adds convenience to the online shopping experience. Scrolling through Instagram and seeing an enticing branded ad, users can immediately unlock a deal and complete their purchase on the spot, without losing track of discount codes buried in marketing emails.

On the other hand, brands will now have a more powerful incentive to promote product releases, bundles, and sales through paid Instagram promotions. Early adopters who integrate promo codes thoughtfully into their IG ad strategies could see improved conversion rates and lower cost-per-purchase.

As social platforms continue evolving into comprehensive shopping channels, “Ads with Promo Codes” reflects Meta’s efforts to stake its claim as a crucial link between digital discovery and e-commerce transactions. The update capitalizes on larger industry shifts around the merging of media, marketing, and retail into unified digital experiences.

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David Adler is an entrepreneur and freelance blog post writer who enjoys writing about business, entrepreneurship, travel and the influencer marketing space.

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