Instagram adds tool to let advertisers tag partners in post
Instagram appears to have added a new tool which allows advertisers to tag a partner in posts. The feature, which is under the 'Tag People' option on the site, has been rolled out with no announcement from Instagram. The move is seen as a response to advertising watchdogs and lobbying groups who have called for more clarity with branded content, and could replace the current #sp, #spon or #ad tags.
Instagram appears to be gearing up to bring a dose of transparency to what its users are promoting. A new tool, spotted this week but not yet widely available, would let advertisers tag a partner in Instagram posts.

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The tagging system is featured below the "Tag People" option on Instagram and seemingly lets advertisers name a partner. The functionality comes after years of advertising watchdogs and lobbying groups being frustrated about the lack of a clear policy or rules for so-called branded content on the app.

Moshe Isaacian, a creative marketing strategist from Los Angeles, spotted the feature earlier this week.

"I saw this pop up randomly when uploading a photo on a business account," Isaacian said via Twitter direct message.

We should note that the button didn't actually function. Instagram declined to comment for this story or let us know if the above is legitimate or in a future product roadmap.

Some background on the madness: Kim Kardashian and Kompany got in trouble last summer for failing to disclose that what they posted on platforms like Instagram was sponsored content or branded advertising or however you like to describe getting paid to promote chewable gummy vitamins or a stay in an Airbnb.

Per the language of social media influencers, you just have to add an #sp, #spon or #ad in the caption of your post. But there are no "hard and fast rules" for the practice, as the New York Times (opens in a new tab)wrote(opens in a new tab) in August, put in place by the Federal Trade Commission, which is tasked with keeping advertisers in check.

“We’re not prescriptive about that,” Mary K. Engle, the FTC’s associate director for advertising practices, told the Times. “But it has to be unambiguous.”

#ad New obsession @sugarbearhair 🐻 I have two of these a day as part of my hair care routine. They are delish! #sugarbearhair #sp(opens in a new tab) A post shared by Kim Kardashian West (@kimkardashian) on Jun 20, 2016 at 12:22pm PDT

Still, while Facebook was well capable of releasing a function or creating "hard and fast" rules, it didn't. Instagram won't say why, but maybe it has something to do with this Vice headline: "How Instagram Became One Giant Ad(opens in a new tab)." Instagram transformed itself from single photo posts by wannabe photographers into a network of wannabe models, who can make money off of promotional deals.

For Facebook and Instagram, such a functionality may not necessarily be a priority. "They’re not making any money off of it. It’s more of a public service," said Brendan Gahan, founder and EVP of social media agency Epic Signal.

The possibility of the tool comes at a time when Facebook is dead-set on destroying Snapchat, whose parent company Snap Inc. starts trading on the stock market Thursday. Last August, Instagram introduced Instagram Stories (similar to Snapchat Stories) with filters and stickers.

"This could be, 'How can they continue to undercut them, continue to make it more and more professional?'" Gahan said. Influencers and advertisers are already somewhat more pleased with their relationship with Facebook and Instagram, which has a larger network than Snapchat.

Meanwhile, Snapchat has less reach and no such formal branded content partnership.

The branded content tool on Instagram is at least something that Isaacian would appreciate. "I was excited that this button exists," Isaacian wrote. "

"It's a much better alternative than having ugly sponsored copy, such as #ad," Isaacian wrote.

The function looks similar to the branded content policy and tagging system on Facebook's main app. Facebook introduced that system in April 2016, allowing verified pages to post content—including Facebook Live videos and Instant Articles—made in association with brands. Previously, branded content was not allowed on Facebook Pages.

"It allows, in theory, for us to monetize every video we publish and keep 100 percent of the revenue," an anonymous publisher told (opens in a new tab)Digiday(opens in a new tab) at the time.

For the case of Facebook's tagging system, advertisers (as in those tagged) were able to see how the posts performed. If Instagram does comment on any new ad tagging functionality, we'll update this story here.