The news: Instagram reportedly plans to refocus its social commerce efforts on initiatives that drive advertising revenues, shuttering its Shopping page in favor of a simpler, less personalized, version per The Information.
The development represents a significant shift in strategy for Meta, which spent much of the past two years focused on making ecommerce a priority. The company was looking to offset revenue losses caused by Apple’s AppTrackingTransparency (ATT) privacy changes, which will cost it $10 billion in 2022.
A sharper focus: The pivot comes amid a challenging time for Meta, as the company faces an economic slowdown that has significantly deterred advertising spending, Apple’s ATT changes that have hindered its ad targeting capabilities, and TikTok’s growing strength as a competing marketing channel.
Fish where the fish are: Direct sales are a fairly small portion of total social commerce sales for any individual platform—including Instagram—and for the overall market.
But those changes have been costly for the reputation of its apps. Users and celebrities decried the platform’s pivot to video, cluttered user interface, and deluge of sponsored posts in July, causing Meta to halt controversial tests.
The big takeaway: Amid a challenging environment that saw its Q2 revenues decline, Meta is getting back to basics. That means homing in on initiatives that can deliver clear results and cutting those that don’t.
This article originally appeared in Insider Intelligence's Marketing & Advertising and Retail & Ecommerce Briefings—daily recaps of top stories reshaping the advertising and retail industries. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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