Instagram leads social media in converting visits to retail sales

Instagram isn’t just for sharing your #selfies with the world anymore.

Retailers have been boosting their digital presence on Facebook Inc.’ s social media photo app for a while now, but two recent examples show just how powerful it has become.

Fashion brand Stuart Weitzman last week launched an Instagram video campaign that directs product posts to Facebook users who vie wed t he ad.

The week before that, Hudson’s Bay Co.’s Lord & Taylor had a dress quickly sell out after 50 fashion influencers were paid to post photos and tag them #designlab to highlight its new collection.

These two cases support a trend highlighted by think tank L2, which noted that Instagram has the highest browser-to-shopper conversion rate of the social media outlets they track.

Credit Suisse analyst Michael Exstein pointed out that this finding is impressive given that Instagram doesn’t usually allow retailers to post active web links in picture descriptions. However, the app makes it easy for brands to directly engage with customers through things such as photo contests, where followers include specific hashtags with pictures in hopes of winning gift cards or other prizes.

“The rise of Instagram follows efforts at Facebook and others to commercialize social media,” Exstein said in a report.

Credit Suisse’s data on 11 fashion retailers found that fast fashion providers such as Forever 21 and H&M had the largest Instagram following at more than six million each.

Privately owned U.K.-based retailer Primark Stores Ltd. led the way in this measure at 2.6 per cent, followed by Forever 21 at 2.4 per cent.

In the department store segment, Nordstrom is far ahead of the competition with about 800,000 followers and an average of 15,000 likes per photo.