Wholesaler Guide
The growth of social commerce How to turn your socials into sales
Not so long ago, offering an omnichannel customer experience was a luxury reserved only for tech companies and rich multinationals. But the rapid rise of e-commerce means that, according to McKinsey, it’s now a ‘requirement for survival’. Chris Green, marketing director UK&I at Schneider Electric, shares his insights on the growing phenomenon of social commerce.
T
oday, customers expect the ability to browse an item on a retailer’s Instagram account, add it to the basket on their app, purchase it on their website, and return it to their brick-and- mortar store, as standard. And with 98% of consumers making at least one purchase through social commerce in 2022, social media is becoming an increasingly lucrative part of that journey - soon to be worth $1.2 trillion. So, it’s important that your business is ready for this next great retail revolution.
The rise of social commerce Discovering, browsing, and buying on social media is often an everyday experience for today’s internet users. But if you or your business are still unfamiliar with social commerce, it simply means using your social media accounts, like Instagram, Twitter, or TikTok, to seamlessly sell your products and services.
It could involve employing a sponsored post that tracked a user’s search history to serve them a personalised social media ad. Other instances include brands that directly engage influencers to sell products on their behalf, and individuals who sell products through their networks but may not necessarily have brand relationships. Plus, it also encompasses simpler, cheaper methods, such as the creation of effective organic content.
Today, social commerce is a flourishing space, creating numerous opportunities for marketers to harness. But why is it growing so rapidly now? One reason is rule changes. Ever since recent privacy restrictions, such as Apple’s 2021 App Tracking Transparency feature, allowed more users to opt out of app-tracking, the ROI of traditional online advertising has decreased by as much as 38%. Meanwhile, the impact of friends on our purchase decisions is growing. 83% of us share our favourite brands with friends, while over half (53%) send them photos of clothes to ascertain their opinions before we buy. As more consumers promote via digital word-of-mouth,
30 | electrical wholesalerMay 2023
this customer-based marketing engine means organisations must continue to invest in the most effective ad spaces, and the quality of their products, services, and experiences, to remain on top.
How TikTok is changing digital marketing
Since its international launch in 2017, TikTok has fast become one of the world’s most popular social platforms. It’s particularly favoured by Gen Z, who on average spend over 1.5 hours per day browsing the app—more than four times that of Snapchat and almost twice that of Instagram. And as Gen Z’s purchasing power and social capital increase, TikTok has also become one of the most powerful spaces for digital marketing and social commerce.
In fact, one of the platform’s most popular hashtags is simply ‘#TikTokMadeMeBuyIt’. It features a variety of influencers and brands showing and talking their viewers through a
product and, with over 37.1bn views, often translates to a direct sales lift. TikTok has also introduced an Ads Manager tool, an objectives- driven Promote feature, and a Shop platform that allows merchants, brands, and creators to sell products directly on the app.
The company is leveraging its unique word-of- mouth capabilities to strengthen its advertisers’ customer satisfaction, loyalty, advocacy, and relationships. As a result, ad revenue is booming—with TikTok set to overtake YouTube and Meta by 2027. So, it’s no surprise to see traditional players like Google attempting to regain their crown.
Google’s determination to reconquer eCommerce
Google’s advertising arm generates $147bn per year, contributing more than 80% of parent company Alphabet’s revenue. Over a billion people shop on its properties every day, using services like Google Search and YouTube to
ewnews.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
