Unlike its more ROI-friendly cousins, Facebook and Twitter (where hyperlinks, and the potential tracking they provide, are encouraged), Instagram hasn’t always been so conducive to measurement. It’s a place for pretty pictures, brand-building and “like” gathering, but in terms of links and the direct bookings that follow, historically there hasn’t been much going on the platform.
Instagram accounts, whether business or personal, are limited to one link in the bio, and all posts must direct back to that link (excluding Instagram’s ads and a recently added purchasing button for Instagram Stories, more directed at retailers, which have done a much better job giving “one-click” buying options).
But in May, the Facebook-owned company rolled out a self-described “action button,” a link on an account’s homepage that takes the user directly to booking opportunities — most of which revolve around restaurants and experiences like ordering concert tickets or planning a day of horseback riding.
According to Instagram Director of Product Marketing Susan Rose, the move came out of feedback from both individuals and businesses looking for more action-driven options on the user end.
“Many of these actions are often already happening on Instagram, just in ‘hacky’ ways, so we’ve made this more turnkey for consumers and businesses,” she says.
“The biggest challenge we’ve had with social media, not just Instagram, is how do we quantify and how do we demonstrate an ROI?” says Agnelo Fernandes, chief strategy officer and executive vice president of the 500-room Terranea Resort in Rancho Palos Verdes, California.
“With the (new) Instagram button, it gives us a chance to test the theory as to whether, truly, an image creates an emotion and compels somebody to book,” he adds.
According to Fernandes, the property uses Instagram to target a younger generation, one more impulsive in buying decisions — a sentiment echoed by Matthew Clyde, president and founder of Portland, Oregon-based marketing agency Ideas Collide.
“It’s very exciting from a marketing standpoint and I think also from a hotel standpoint,” Clyde says. “Consider the amount of time and eyeballs that are going into that type of platform right now, especially in the millennial market.”
Founded in Los Angeles in 2011 by Chris Webb and partner Eric Jaffe, ChowNow, an?online food-ordering service that works with over 10,000 restaurants in North America, is one of a handful of early partners in Instagram’s action button, along with OpenTable, Yelp and Resy, among others.
“From a client perspective, we’re seeing a ton of restaurants engaged on Instagram,” Webb says. “It feels like it’s become the default social media platform for restaurants, from what we can tell.”
ChowNow charges restaurants a flat monthly fee to be on its platform and takes a cut only on a customer’s first order. The Instagram integration is built into that monthly fee, so there’s no extra cost to the restaurant on orders placed through Instagram.
“Restaurants for the most part are usually a little bit behind the technology curve, at least the more local independent restaurants we work with. And they’ve embraced it right out of the gate,” according to Webb, who says the button is a vast improvement from what existed previously.
“There’s always been that link in the bio. You’ll post something and then you’ll be allowed to have one link,” Webb says. “The problem is, that link constantly changes when you change the content, so you may post something, and the link matches, but if you go back later to post something else, you then have to swap out that previous link.
“So, the fact that this ‘action button,’ this ‘start order’ button, is always present, regardless of whatever that in-bio link is, it makes it so much more convenient for everyone,” Webb continues.
Terranea’s Fernandes says the property ideally expects a 30 to 1 ROI after 12 to 18 months of testing Instagram’s action button.
“I think initially there will be negative impact to it because we’re going to have to invest in our awareness-building campaign, number one,” he says.
And what about a future where hotel guests can book directly via Instagram?
“Absolutely, there’s no doubt,” Fernandes says. “I think that the future is, you’ll be able to book, not only a hotel stay, but a total experience. I see them going toward where the meta searchers have gone.”
“It’s one thing when it’s a table reservation, that’s pretty quick and often doesn’t require a credit card,” says Ideas Collide’s Clyde. “The hotel has a few more steps, so I do see maybe more transactions happening directly on the booking engine within the hotel itself.”
Indeed, according to Instagram’s Rose, the ability to complete a purchase is currently available through one partner: Santa Monica, California-based movie ticket seller Atom Tickets.
“I think that’s the long-term play because then (Instagram) gets more funding or more advertising dollars from those brands that want to make more transactions,” Clyde adds. “I think that’s always where their mind and their long-term play is – for that ongoing engagement and interaction.”