There’s no hiding the fact that people are spending a lot more time than ever before on social media sites just scrolling through their feeds. More than half of American adults will make purchases on their preferred social media platform in 2022, driving social commerce sales to $45.74 billion.
To take advantage of the opportunities presented by this wealth of behavioural data, brands need to be present everywhere consumers spend time online. Most major brands, according to recent research, intend to increase their spending on social commerce in 2023.
Gain insight into the new social commerce trends that will shape the industry in 2023 and how they can boost your brand’s bottom line. Keep reading to learn about the major developments that have influenced social business in recent years and how you can take advantage of them in the year 2023.
A Definition of Social Commerce
Consumers’ interactions with brands and retailers on social media platforms are referred to as “social commerce,” a subset of e-commerce. Simply put, social commerce is the practise of making financial transactions over social media sites like Facebook, Instagram, and TikTok.
The practise of “social buying” is on the rise, not just in the United States but all over the globe. By 2025, the market size of social commerce in the United States is projected to increase to $79.64 billion. While that may be a very encouraging sign for the industry as a whole, individual brands still have a long way to go in terms of marketing.
Marketing strategies in this area can help brands capitalise on consumers’ fear of missing out and their subsequent impulse buys. TikTok, Instagram, and Snapchat are just a few examples of the major social media platforms that have optimised the purchasing process by lowering barriers at every stage of the buyer’s journey on their respective sites.
Emerging Patterns in Socially-Driven Business
Social media marketing’s ability to evolve and adapt rapidly to meet the needs of a shifting consumer base is one of its most appealing features. Over the course of the last two decades, visual, fleeting content has surpassed text-based updates as the preferred mode of communication on social media. When deciding how to approach social commerce in the present, businesses can learn from their past successes. Think of it as a chance to repurpose successful brand messaging for a different medium, like repurposing a billboard’s headline for a pay-per-click advertisement. The evolution of social media into social commerce should follow similar patterns.
Instagram Shopping, Facebook Shops, and Pinterest Buyable Pins have all been revamped in recent years to cater to shoppers’ demand for more streamlined purchasing processes. Snap Inc., which has 229 million users, is also implementing social shopping features.
Changes to Brand Advertising Techniques
Social shopping can be very different between industries, just like it is with any other distribution method. Promoting athleisure wear through social commerce ads is very different from, say, promoting electronics. As with any emerging medium, it’s important to invest time in researching the competition before implementing a social commerce strategy. You can hire experienced marketers if you don’t have the resources in-house to conduct this kind of study.
Users are less likely to interact with or pay attention to brand-generated content given the sheer volume of available options. This has led to an increase in the number of companies realising the importance of UGC, e-commerce in real time streams, chatbots, and influencer marketing. User-generated content is approachable and friendly to users because, like a subtle endorsement, it adds a personal touch to your brand. These organic opportunities should not be disregarded in light of the seismic shift in conventional content engagement.
Customer Service in Social Commerce
How a shopper engages with a website has an effect on their online purchases. When a customer makes a purchase on an e-commerce site, the store’s owner has complete authority and often times can even monitor the customer’s every move. There is more variety in what you can buy thanks to social commerce. As a result of skipping a step in the conversion process, this can increase revenue and the number of sales made. The potential drawback is that, as an advertiser, you might not have as much access to information or management as you would on your own site or e-commerce shopping cart.
Whenever making pivotal choices in the realm of social commerce, keep digital convenience in mind as the end goal. Customers will become frustrated with brands that cling to antiquated business models, such as those that require a lengthy buyer’s journey and convoluted purchase models. The easier and quicker it is to complete a purchase, the more money you’ll likely make.
Data From The Social Business Market And A Look Ahead
It’s fascinating to see how developments in social networking have spread beyond simple messaging services. Traditional DTC companies have spent billions on paid social advertising over the past few years in an effort to generate new business. As a result of their success, many other niche and independent brands entered the market, raising the stakes for advertising space. As a result, the price of advertising went up and social media users became more resistant to seeing advertisements. In the third quarter of 2021, global spending on social media advertising increased by 26% from the same period in 2020. Insider Intelligence projects a 24.9% increase in retail and social commerce sales in the US in 2022, totaling $45.74 billion. Apparel and other fashion-related items continue to be the most popular items to buy and sell on social media.
Final Word
By leveraging social commerce, businesses can create seamless purchasing experiences and connect with customers where it matters most. Brands will have more leeway to create potentially explosive social commerce experiences and beyond as social media continues to evolve. In order to reach the next level, forward-thinking brands should adjust their marketing strategies to focus on fostering trust among their target demographic and adopt social commerce.