Meta’s “year of efficiency” begins with the demise of live shopping on instagram. Users will no longer be able to tag products while live broadcasting after March 16, 2023.
The move underlines the difficulties of making livestream shopping profitable in the United States, as opposed to its popularity and profitability in Asian countries. Despite the early success of firms such as TalkShopLive, NTWRK, and Brandlive, as well as acceptance by large tech giants like as Meta, Amazon, and YouTube, the challenges remain.
The effects of the pandemic
The pandemic’s consequences are still being felt. Online retail increased during the epidemic, but when things returned to normal, analysts discovered that U.S. customers had not fully embraced live purchasing, which accounted for only 5% of overall e-commerce sales in the country. Due to minimal revenues, TikTok has cut back its live commerce goals. Cultural and technological contrasts between Western and Chinese marketplaces may explain why live commerce has not been as successful in the United States.
No live commerce
There is no live trade. Despite the fact that Meta is discontinuing its live shopping feature on Instagram, the company claims that 90% of users follow at least one business on the platform.
Rather than live shopping, Instagram will highlight advertising as the primary way for users to discover and shop for companies. This includes investing in checkout as well as its automated Shop advertising and Advantage+ shopping campaigns to increase ad performance. In response to user complaints about the overemphasis on video content, Instagram recently deleted the Store button and relocated Reels. Despite the end of live shopping on Instagram, the company will still allow creators to have Q&As and invite visitors, and companies can set up and manage a shop on the platform.
Why do we care?
We don’t know for sure what does Meta mean when they say they’re focusing more on Instagram ads. But, advertisers may need to alter their strategy to account for the absence of the Shop tab and identify new ways to catch users’ attention and drive conversions for the time being.