Instagram is expanding its interest into its e-commerce business, Instagram Shops. It has been reported that Instagram is launching Ads in Instagram Shop.

Instagram shop
Source: Instagram

Instagram says that it is currently testing the new format, which includes both single images and the option for an image carousel “with select U.S.-based advertisers ahead of an expansion to other markets in the months to come.

Instagram Shops were first introduced last year as part of Facebook’s efforts to expand its social platforms from connecting with others to allowing users to follow their favorite brands and making the platform an online shopping destination with an “integrated checkout experience.” 

In a report by TechCrunch : “Like Instagram’s other advertising products, Ads in Instagram Shop will launch with an auction-based model, the company says. The ads will only appear on mobile, as the Instagram Shop tab is a mobile-only feature. However, how many ads an individual consumer sees will be based on how they use Instagram and how many people are shopping in the Instagram tab. The company plans to monitor consumer sentiment on this point, in order to balance ads and content.

To kick things off Instagram will be working with a few U.S. advertisers who will test the product and provide feedback to the company. The advertisers include Away, Donny Davy, Boo Oh, Clare paint, JNJ Gifts, DEUX and Fenty Beauty. By the look of it the advertisers picked by Instagram cater to the different categories of goods that users generally shop for. The categories include beauty, home décor, pet products, travel and more.

Currently, the feature is still in the testing phase and Instagram hasn’t disclosed an exact timeline regarding its official rollout. However, in the coming months Instagram is planning to expand the Ads in Shopping Section to non US  advertisers too.