The dawn of widespread internet access ushered in a new era for businesses, allowing them to available to people worldwide their offerings. This period, particularly the late 1990s, marked the birth of e-commerce, which has since evolved into the realm of social commerce. Let’s delve into this significant trend shaping the advertising landscape.

Social Commerce: A Deep Dive

Riding the Advertising Wave

Social commerce, our focal point, represents a cutting-edge advertising approach within the broader e-commerce spectrum. In an effort to be up to date in the digital world, companies are increasingly leveraging social media as a prime advertising platform.

Unpacking the Mechanics of Social Commerce

The concept is elegantly simple. Businesses showcase their brands on social media platforms, capitalizing on the vast user base to gain exposure. The beauty lies in the power of shared experiences – users spread the word, organically transforming into potential customers. E-commerce giants like Amazon harness social commerce to advertise products, often sweetened with attractive discounts on their main website, thereby maximizing visibility.

The Weight of Social Commerce

A staggering 87% of consumers acknowledge social media’s influence on their purchasing decisions, with 25% specifically seeking recommendations for apparel on these platforms. Furthermore, a remarkable 90% of followers actively engage with brands through social media. The impact is undeniable: in the US, 59% of consumers find social media customer service a more efficient way to seek assistance.

The financial testament to this trend is evident in the astounding US$226.00 billion revenue generated by social network advertising in 2022.

Micro-Influencers: Still Powering Brand Growth

While collaborating with micro-influencers isn’t a novel concept, its relevance remains steadfast. Small businesses, in particular, benefit from the budget-friendly reach these individuals offer.

Unlike macro-influencers with massive followings, micro-influencers partner with brands at accessible price points, even for those with limited budgets like small businesses can afford. They often cultivate niche audiences, streamlining segmentation and ad targeting. Moreover, their paid partnerships are generally perceived as more genuine and relatable compared to their larger counterparts. These factors position micro-influencers as valuable assets for brands aiming to boost conversions.

When collaborating, prioritize micro-influencers aligned with your industry and whose followers mirror your target demographic.

5G Connectivity: Unlocking XR Experiences

The ongoing global rollout of 5G wireless connectivity, coupled with advancements in edge cloud processing and artificial intelligence, is poised to revolutionize social commerce. This technological synergy will usher in an era of seamless mixed reality experiences across a spectrum of connected devices.

eMarketer’s projections suggest a surge in US AR users, from 83.7 million in 2020 to 101.6 million in 2022. This growth trajectory could even be surpassed if brands strategically leverage these technological advancements to craft immersive shopping experiences for consumers.

Digital Avatars: Storming the Fashion Runway

While human influencers will continue to hold their own, digital avatars are set to redefine clothing promotions, particularly in the realm of digital fashion shows. These virtual beings offer brands unparalleled flexibility in showcasing digital apparel, launching new collections, and facilitating virtual try-ons. This translates to a more realistic and engaging experience for consumers.

Dedicated Social Marketplaces: Fueling Social Commerce Expansion

In 2023, major social networks will double down on their e-commerce capabilities. Witness the rise of shoppable Pins on Pinterest, Facebook Shops, Instagram shopping, and specialized social marketplaces, particularly in China.

Pinduoduo, a prominent China’s largest interactive platform, exemplifies the power of social commerce in China. Its user experience prioritizes browsing and interaction over traditional search-driven models. The platform cleverly incentivizes collaborative shopping by offering lower prices to “teams” of two or more shoppers.

Pinduoduo’s success is partly attributed to its integration with the WeChat mini-platform, a trend adopted by numerous other stores. This mini-platform has been instrumental in propelling social commerce within China, with projections pointing towards continued expansion in 2022 and beyond.

Instagram’s Top 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

Most Popular Product Brands on Facebook:

• Coca-Cola 110M
• Samsung 160M
• Red Bull 50M
• Nike Football 44M
• Converse All-Star 44M
• Netflix 80M
• Oreo 44M

For a deeper dive into the fascinating world of social commerce, check out the excellent infographic crafted by the team at 16best to uncover more intriguing facts about the growing.