In 2023, the new buzzword for social, brand and digital marketers will be social commerce!
How do we define social commerce? In today’s digital age, we define social commerce as a purchase that is made or influenced by social media. It is not only the ability to make a purchase through a social platform but also brands being able to use social media as a tool to bring awareness to their products.
In this article, we’re sharing how social commerce will impact brands in 2023 and how you can stay ahead of the curve.
What to Expect from Social Commerce in 2023?
Source: Statista
While social shopping is still in its early stages, one thing is sure: it’s wildly profitable. As per Statista, social commerce generated $475 billion in sales in 2020 and is predicted to generate $3.37 trillion by 2028, growing at a 28.4% annual pace. Social commerce will be advocate-led – it’s an untapped opportunity with over 650 million people. Shoppers are already shopping on social platforms, with Facebook being the most popular platform worldwide for online shoppers at 31%, followed by Instagram at 23% and TikTok at 8%. Many of these purchasers have come through from more user-led content – i.e. content not owned by the brand. Social media platform purchases are most likely to come through from Gen Z and Millenials.
The Psychology of Shopping on Social Media
- Trust: Accenture survey of over 10,000 consumers says a shopper’s biggest concerns are around trust and what their protection is from shopping on social. Will they get a refund, or will they be protected from their social purchases?
- Discovery: Social networks are visited by more people than search engines every month. Shoppers are now turning to Instagram and TikTok to research products and brands, rather than Google, with 42% of consumers using social channels to discover new products.
- Authenticity: The younger generation is embracing authentic brands that portray more UGC (User Generated Content) on social media, with social being an advocate channel for these consumers.
- Advocation: Advocative content can be described as user-led, which can support and influence the decision to purchase on social media. A good example of this is customer reviews, as honesty and transparency help build positive decision-making in consumers.
How are Brands Adopting Social Commerce?
As we move into this post-Covid era, it’s clear to see that brands are integrating social commerce more seriously, leveraging a range of social tools to speak to their audience.
- Heavier reliance on visual search: Socially integrated visual search is being seen across global brands, especially on Pinterest.
- Influencers: Brand collaborations with influencers that incorporate shopping opportunities with shared advertising and product tagging.
- Social shopping maturity: Facebook and Instagram shopping has been around for a while, but you’ll start to see more and more brands maturing with their approach, opting to include products that will have multiple images.
- Bespoke product feeds: Brands are putting greater emphasis on product feeds that are relevant to each social channel, and that speak to audience insights to know what will sell on social media.
How Can You Stay Ahead of the Curve?
While there are many ways to start integrating social commerce statics into your digital marketing strategy, we’ve highlighted a few below that will help you stay competitive:
- Trust: Ensure that your social shopping policy is in line with your online shopping policy, i.e. if shoppers will be purchasing through social media they should have the same returns process and protection provided as if they were shopping on your website.
- Top-of-funnel activity: Enhance brand and product awareness opportunities with increased activity at the top of the funnel.
- Authenticity: Steer away from polished and campaign-led content across social media channels and be more authentic with user-generated content to ensure you’re appealing to the generation shopping on social media
- Managing expectations: Expect a slow pickup in the AU market – in a 5-year social commerce plan, your first 2 years should focus on discovery strategies.
To understand how Pattern can support your social commerce in 2023, contact us here or discover more about what we do.
