Online shopping

E-commerce is upending Madison Avenue, led by Amazon

Illustration: Aïda Amer/Axios

E-commerce is colliding with digital advertising and forcing traditional ad agencies to embrace data and distribution around specific platforms like Amazon and Google.

The big picture: Today’s marketing landscape revolves around the major platforms (Google, Amazon, Facebook) that make money by offering brands a wide variety of advertising opportunities — from search and social media ads to sell to consumers directly, to video campaigns to improve a company’s reputation.

Instagram launches in-app shopping

A line of people sitting down and browsing Instagram on smartphones
Scrolling through the Insta feed. Photo: Mauricio Santana/Getty Images

Instagram announced Tuesday that it is launching an in-app checkout function with big brands like Adidas, H&M, Zara and Kylie Cosmetics that will allow users to buy from those companies' ads without leaving Instagram.

Why it matters: Instagram ads are especially successful at getting users to pay attention to brands because they can utilize something Amazon and other retailers don't have — data on what people think is cool. Now, several massive brands can swiftly turn those targeted ads into purchases.

Go deeper ... The future of online shopping: Ads that let you try things on