Social Commerce Webinar: Three Key Takeaways

 

Consumption is changing. People are spending more and more time online and on social media. Gen Z, specifically, spends over 6 hours on digital media, and over 3 hours on social media per day.

With the COVID pandemic affecting most of social and outside life, the dependence of users on the online world accelerated even more. This naturally has had a domino effect on advertising. One key trend which has been noticeable is that people are tired of advertising interrupting their experience. Even though ad blockers doesn’t influence all forms of media, the message is that people just don’t want to be approached through advertising. Other forms of communications, especially, Peer to Peer, have proven to be far more effective in the recent times. 


Social Commerce Means Selling Through Social Media

Social commerce is the process of selling products directly on social media, or assisted by social media. Essentially, the entire shopping experience - from product discovery and research to the check out process - takes place right on a social media platform. 43% of consumers are now more likely to buy a new product when learning about it on social media.


Social Commerce Will Sustainably Grow

The social commerce market is expected to have over 30% compound annual growth from 2021 to 2025. China is a powerhouse of social commerce, and the success is starting to be replicated across other markets. In the US, for example, 48% of internet users aged 18 to 34 bought something through social commerce in 2019, with an average order size of $70.

The trend will continue, and will continue worldwide.   

Social Commerce Will Solve Your Business Challenge 

Social commerce will lead to a fundamental change to brands’ business models. Many brands have a predominantly retail based sales funnel, but are now reducing their physical store fronts, with a vision to move towards digital. E-commerce & social commerce allow brands to have direct to consumer access. This has several advantages. With dealing directly with consumers, you get access to a lot of first party data. You really know who’s buying, and how consumers are interacting with your brand, real-time. This impacts your lead generation, which in turn, increases conversions. This would make the funnel shorter, there will be less friction, and you’ll have a higher retention, aided by community building. 


With increasing technical development, there are more and more opportunities for social shopping. There is a clear shift in focus towards sales on more and more social media platforms. The Chinese networks have been the first movers, and trendsetters, with the likes of WeChat leading the way in social commerce. 


Continuous development of relevant social commerce features will disrupt the e-commerce market throughout the next years. The key takeaways are taken from our social commerce webinar How to Sell on Social. To get in touch with our CEO Chris Kastenholz, who led the webinar, drop in a line at chris@pulse-advertising.com