It all began when the internet was commercialized and made available for everyone. Companies use this chance to make their products and services available to people worldwide. The last decade of the 20th century is the moment when e-commerce was born and now, social commerce. Let’s explore all about the most significant trend in advertising, the social commerce.
Social Commerce
The Biggest Trend In Advertising
Social commerce, the topic for today, is one of the latest ways of advertising, which is a part of e-commerce in general. To be up to date with the latest trends in digital technology, more and more companies are starting to use social networks as a means of advertising space.
How does social commerce work?
It is straightforward. Companies “show off” their brands, and millions of people using social networks daily will see their advertisements. The best thing is that people will share experiences with others, making them potential customers. Shopping platforms like Amazon use social commerce for advertising items and offering various Amazon discounts on their website. In doing so, they increase the possible number of people that will end up seeing the advertisement.
How important is social commerce?
A significant percentage of customers (87%) say that social media helps them decide what to buy, while 25% seek advice on social networks when choosing apparel. A massive 90% of followers say they try to reach out to brands via social media. In the United States, 59% of customers think that customer service via social media makes it easier to get answers and issues resolved.
In 2022, the total social network advertising revenue was a mind-blowing US$226.00bn.
Micro-influencers continue to help brands grow their reach
Working with micro-influencers isn’t a new trend, but it’s still relevant and will be here in the following years. Small businesses will find that micro-influencers allow them to balance their advertising budgets better while achieving greater reach.
Unlike some big influencers with hundreds of thousands to millions of followers, micro-influencers work with brands on a budget that even small businesses can afford. They often have particular audience types, simplifying segmentation and ad targeting. Also, they are generally seen as more authentic and transparent than big influencers regarding paid partnerships. Considering all these factors, micro-influencers can make a difference in helping brands drive conversions.
When working with micro-influencers, choose those who are niche in your industry and whose followers are similar to your target persona.
5G connectivity enables XR experiences across connected devices
In addition to edge cloud processing and advanced artificial intelligence, continued global deployment of 5G wireless connectivity will improve social commerce. It will enable seamless mixed reality experiences on a variety of connected devices.
A report from eMarketer predicts that the number of AR users in the U.S. will grow from 83.7 million in 2020 to 101.6 million in 2022. This growth forecast could be surpassed if brands can harness the power of new technology and 5G to offer consumers a more immersive shopping experience.
Digital avatars will take the fashion world by storm
While influencers will still play a key role in clothing promotions, digital avatars are ready to walk digital fashion shows. They give brands greater flexibility in layering digital apparel, promoting new collections, and enabling digital sampling. Consumers will also have a more realistic view;
Dedicated social networking marketplaces will continue to help expand social commerce
In 2023, most prominent social networks will increase their ability to do social interaction on their platforms. We’ve seen shoppable Pins grow in popularity on Pinterest, Facebook Shops, and Instagram shopping, as well as some specialized social media marketplaces, especially in China.
For example, Pinduoduo, China’s largest interactive e-commerce platform, has driven the use of social commerce in China. Its user experience focuses more on browsing and interaction than more traditional and conscious search-based discovery models. It encourages consumers to form “teams” of at least two people to get lower prices.
One of the reasons for Pinduoduo’s success is that it uses the WeChat mini-platform, and this is just one store that does so. The WeChat mini-platform has contributed significantly to the development of social commerce in China and is expected to expand in 2022 and beyond.
Instagram’s most followed brands.
- Nike 235M
- Zara 53.2M
- H&M 40M
- Adidas 27M
- PSG F.C 62M
- Coca-Cola: 2.8M
- NBA 70M
- Victoria’s Secret 74M
- Real Madrid 125M
- National Geographic 238M
Product brands with the most Facebook fans.
- Coca-Cola 110M
- Samsung 160M
- Red Bull 50M
- Nike Football 44M
- Converse All-Star 44M
- Netflix 80M
- Oreo 44M
Please check out the excellent infographic created by the guys at 16best to find more interesting facts about the growing social commerce.
