Meta is coming back headfirst to social shopping with an AI twist.
The tech giant announced a slew of new shopping-related updates Tuesday at its e-commerce conference Shoptalk, including affiliate marketing tools and AI-powered product recommendations.
Creators are at the core of Meta’s deployment.
Here’s an overview of the shopping features promoted by Meta:
- affiliate marketing i’m back. Instagram creators can earn commissions from products tagged in Reels, and Facebook creators can earn money from products tagged in Reels and photos.
- Thanks to AI, you can now display more detailed product descriptions on Facebook and Instagram. Meta aims to make shopping a little easier for consumers by using AI to surface more information, such as reviews and product details, when users click on an ad.
- Checkout has also undergone a makeover. Facebook is rolling out a new and efficient way to buy products from ads with just one click of the “Buy Now” button. Advertisers can choose checkout partners such as PayPal and Stripe. Early companies signed up for this experience include 1-800-Fflowers, Fanatics, and Quince.
- Advertisers can get more detailed information. Meta allows advertisers, especially retail media networks (Target, Walmart, Amazon, etc.), to select specific products from a catalog instead of running broad campaigns. Brands can also leverage Meta’s AI to recommend what content formats their products should appear in, such as Stories, Reels, and Carousels.
Meta’s pitch to brands and advertisers is that these tools not only increase awareness, but also increase clicks and purchases.
The company reported an 18% increase in ad impressions in the fourth quarter compared to the same period last year.
Affiliate returns
The new affiliate experience is slightly different between the two meta apps.
On Instagram, creators can add products from Meta’s brand catalog directly to their Reels. Influencers can also add external URLs, such as third-party affiliate links from brands and platforms like LTK and ShopMy, but only if the product is already listed in Meta’s catalog. Creators are limited to 30 products per reel, and links must point to a single product, not a collection. Eligible creators (who must be 18+ and have at least 1,000 followers) will soon see an “Add Product” option in the app.
Previously, creators could direct followers to affiliate links on Instagram via a link in their profile, DMs, or Stories.
Facebook, on the other hand, allows creators to earn commissions by including shoppable links in their Reels and photo posts. Facebook’s Affiliate Partnerships program will launch in partnership with two major retailers: Amazon for creators in the US and Shopee for creators in select Asian markets. Facebook hinted that it would add more partners, including Mercado Libre, Temu, and eBay.
Commission rates are set by brand partners for both apps.
This isn’t Meta’s first rodeo with a native affiliate marketing program.
In 2022, Instagram will eliminate a test that allowed some influencers to earn commissions from products tagged in their posts. The beta program lasted about a year.
Meta recently caused controversy among influencers after its AI-powered “Shop the Look” feature appeared on some creators’ content, but did not pay them a commission on sales from that content. The frustration felt by influencers encapsulates broader tensions currently occurring between Big Tech, AI, and creators.
Meta told Business Insider that “Shop the Look” is an ongoing test and the company is providing feedback as it continues to develop the product.