Meta and Amazon are testing a feature that would allow shoppers to purchase Amazon products directly through ads on Facebook and Instagram.
Meta had previously abandoned its efforts to bring shopping directly to Facebook and Instagram, although the social networking company still believes in the potential of its apps as a shopping platform.
The initiative requires consumers to link their Amazon accounts to their Facebook and Instagram accounts.
The move increases Meta's attractiveness to advertisers and allows Amazon to attract more buyers from outside its online store.
The unprecedented partnership between the two companies could help address challenges posed by TikTok and Chinese startups like Temu and Shein. TikTok has launched an e-commerce marketplace in the United States.
US shoppers can see real-time prices, estimated delivery times, and product details in select Amazon ads displayed on Facebook and Instagram.
“For the first time, customers can shop through Amazon ads on Facebook and Instagram and visit the Amazon website without leaving the social media app,” an Amazon spokesperson said.
It is unclear the extent of the new initiative, although some Instagram ads encourage users to shop on Amazon and direct them to product pages and purchase buttons.
This partnership provides significant revenue opportunities for Amazon, Meta, and advertisers. Amazon is working to better target its apps and customers outside of its core markets.
Last year, the company launched “Buy with Prime” to generate logistical revenue from transactions on other sites and increase the value of Prime memberships.
Meta has made a big push into e-commerce, even ditching the Instagram Shops tab that allowed users to find shoppable content in their feed and disabling live shopping features on Facebook and Instagram.
Amazon attracts quality shoppers who know what they're looking for, even if it doesn't help them discover products.
In 2021, Apple changed its privacy policy. This allows users to opt out of tracking.
This limited ad targeting on iOS devices resulted in an estimated $10 billion loss in ad revenue for Meta last year.
Since then, Meta has been looking for ways to leverage AI to improve ad targeting accuracy.
Shopping apps and social media sites don't often work well together, but Meta and Amazon's partnership shows how they can complement each other: Shoppers benefit from relevant ads and a fast checkout experience, while Amazon "does a lot more of the purchasing."