Social commerce competition heats up with new features from Instagram, Pinterest and TikTok

On Monday, an Instagram representative said the platform was making some changes to the way brands and influencers interact that will make it easier for both parties to do business in a more organized way.

The changes come in two ways . First, influencers can tag up to two brands in a sponsored content post. They can then request approval from brands through the app to officially designate their post as branded content. Brands can see content that other brands have been tagged in and can automatically approve the post. The post can be published with or without approval, but the "paid collaboration" label and brand name will not appear until it's approved.

Secondly, brands can now see data and insights for every sponsored Reels and Live post they are tagged in . Influencers have been able to see insights for posts they are tagged in since May 24. Brands can now view analytics on performance, engagement, and reach. This comes shortly after Instagram announced the Drops feature which launched in late May.

The new features are among several launched in the last month by social platforms from Instagram to TikTok to Pinterest. Each is vying for a piece of the lucrative social commerce market. Social commerce in the U.S. is expected to grow 34% to $36 billion this year, according to eMarketer. In 2020, eMarketer reported that social commerce sales grew 38%, beating its forecast for 20% growth. Social commerce is already huge in Asia, especially in China, where it's a $300 billion business.

Instagram’s new Drops feature lets brands announce upcoming products, generate buzz, and release limited-edition items at set times, similar to how streetwear brands like Supreme operate. Charlotte Tilbury is one of the first five brands to use the new Drops feature, and a representative said the brand will continue to use the feature in the coming weeks.

Some big brands have touted the success of Instagram shopping, such as Sephora, which joined the program last year.  

Pinterest also had social commerce news on Monday. It launched a two-week rotating curated online store with exclusive products from DTC brands. The store is called The Goods, and among the first brands is Outdoor Voices. Aya Kanai, Pinterest's head of content and creator partnerships, said the platform's shoppable pages saw a 200% increase in engagement between March 2020 and March 2021, while product uploads from merchants increased 14 times in the same period.

TikTok is the newest of these, less than five years old, and is also testing social commerce. As of last month, the platform was piloting social commerce programs in the UK and parts of Southeast Asia, focusing on streetwear brands. While TikTok hasn’t officially announced plans to compete with Instagram Shop globally, it’s likely around the corner.

Despite lacking a dedicated shop page like Instagram, TikTok’s shoppable ads have proven popular.   

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