The most recent Meta (NASDAQ:META) actions indicate a tech titan attempting to adapt to a new reality. Platforms frequently update their features, while significant players less regularly make modifications to elements that impact important business lines and revenue. But the multinational technology conglomerate (NASDAQ:META) is still working hard to change its current and future commercial operations.
The modifications show how important Instagram has become to the digital behemoth if nothing else. The company narrowed the commerce features on Facebook (NASDAQ:META), which will no longer support live shopping as of October 1. However, the company expanded shopping features on Instagram, adding new purchasing capabilities that let users buy products directly through chat.
If nothing else, the changes demonstrate how significant Instagram (NASDAQ:META) has become to the digital juggernaut. The corporation has restricted Facebook’s commerce functions, and as of October 1, live shopping will no longer be supported. However, the business increased Instagram’s shopping options by introducing fresh purchasing features that let consumers make product purchases over the conversation.
Jen Jones on Meta
It is unclear how much the changes will impact brands. However, Jen Jones, chief marketing officer of Commerce Tools, an e-commerce software provider that partners with well-known brands and merchants like Sephora, Ulta Beauty, H&M, and others, predicts that those effects will probably differ regardless. According to her comments to WWD, the majority of our clients are either big retailers selling directly to customers or brands who are working on a direct-to-consumer strategy. She added, “I think an announcement like this from Meta isn’t going to impact them as much. [But its ad business] does, I think, tend to play with some of these smaller companies, brands, and retailers.”
Furthermore, it’s unclear what the decision to discontinue live shopping, at least on Facebook, will ultimately entail. The e-commerce movement is hugely popular in Asia, and by 2024, it was predicted to generate $35 billion in sales in the United States. Even so, TikTok appeared to back off it last month, apparently reducing its intentions for the U.S. and Europe. Meta is now taking a step back.
However, the decision may have little to do with boosting Reels, the short-form video format on Facebook and Instagram that the technology conglomerate has been hyping as a potentially significant revenue generator. It’s also not the end of the format if it wants to focus on Reels while limiting its selection of video alternatives.
“If you think about Meta and TikTok, even, and the consumer behavior there, I think that’s a little different than maybe sitting on a Livestream where you’re focused for a longer amount of time, like on YouTube,” Jones noted. She has also enjoyed tremendous success on owned platforms like company websites. She observes, for example, that Sephora is doing reasonably well with its live streams.
Such actions are significant in the Meta (NASDAQ:META) world but less so in terms of its long-term vision, which is entirely centered on the metaverse. In this sector, the corporation was especially active last week.
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