Instagram says goodbye to purchases in live videos

Meta announces its departure from the online shopping business on Instagram. Thus, users from March 16 will not be able to label any product while streaming live videos. This way of promoting will disappear from the platform, after a similar closure last year on Facebook.

This decision highlights the difficulties that the United States market has had for live purchases to be successful. On the other hand, in Asian markets this activity has been very popular, where applications such as WeChat, Taobao Live and Douyin have proven to be a profitable endeavor.

In the wake of the pandemic, many US companies have also looked to adopt direct shopping, with the goal of increasing their own revenue. Before long, experts were calling live shopping the future of e-commerce. However, when the tide turned and things returned to normal, analysts found that American consumers had not embraced these types of purchases. One report noted that social commerce as a whole, which includes live shopping, only accounted for about 5% of total US e-commerce sales last year, according to Insider Intelligence data.

Following this, TikTok began winding down its live commerce plans in the US and Europe, as many streaming tests had no sales.

Bet on advertising

Meta claims that even though it is ending live shopping, it is still betting on shopping as 90% of users follow at least one business on the site.

Despite this, instead of boosting live trading, it will now focus on advertising as one of the main ways people discover businesses and shop on Instagram. It is a measure that the company adopts to focus on those functions and features that offer value to users. In this way, it includes the use of its automated tools such as store announcements and Advantage+ shopping campaigns. They are intended to help improve ad performance. The company will also continue to invest in checkout, where people can buy a product in just a few clicks from Instagram and Facebook Stories, Feeds, or Reels.

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