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Marketing and Sponsorship

Instagram Helping Sports Industry Promote, Sell Merch Directly

Sports properties and players have "long used Instagram to promote themselves and build relationships with fans," and they now are increasingly "using it to sell products," according to Sahil Patel of the WALL STREET JOURNAL. Last month, Serena Williams' S by Serena fashion brand "released a new sequin jacket that could only be purchased through Instagram's 'Checkout' feature." Instagram drove more than 50% of sales for the brand in the "week following the jacket's introduction." The app also already is the "primary venue for social merchandising efforts" by the Clippers. Instagram is "making commerce a major priority as consumers increasingly flock to mobile devices to shop." Instagram Head of Sports Dev Sethi said that the company has been "encouraging the experiments from the sports world." The Facebook-owned app "sees value in sports leagues, teams and athletes as their own type of fashion influencers." Instagram does not "collect revenue when sales take place on other companies' websites, but charges a processing fee for Checkout sales." SerenaWilliams.com E-commerce Chief Stephanie Lim said that the app can "become an important part of what is ideally a diverse portfolio of sales channels if it brings in new customers and sales that a brand wouldn't have gotten" otherwise. However, she added that there still is "value in directing users to brands' own websites," where brands can have "greater control over the shopping experience" (WALL STREET JOURNAL, 12/3).

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