Social commerce will generate more than 1 trillion euros in revenue worldwide in 2024

Social commerce is drawn as one of the most promising forms of online sales for this year and to prove it, the executives of the M&C Saatchi Performance agency Jonathan Yantz, Managing Partner for America, and Melissa Yik, Director for APAC, published the report “Social Commerce Trends 2023” in which they analyze the rise and growth of this new segment.

The report highlights that in 2022the income generated by social commerce they rose up to 724,000 million dollars (around 673,000 million euros), with an expected annual growth rate of 30.8% from 2022 to 2030. Likewise, the forecasts state that by 2030 Revenues from this segment will reach 6.2 trillion dollars (just over 5.7 billion euros).

In Chinasocial commerce is already very popular and has been the key for brands to reach conversion rates of almost 30% on social media (rates up to ten times higher than traditional e-commerce) thanks to collaboration with influencers and participation in live stream shopping.

For his part, in USAsocial commerce has become a rapidly growing segment and is expected to by 2025, sales reach 80,000 million dollars (more than 74,000 million euros), which would represent 5% of the total sales of US electronic commerce.

Facebook and Instagram: the best platforms for social commerce

The report claims that The best platforms to adopt social commerce are Facebook and Instagram, Therefore, it recommends that brands focus their efforts on virtual stores in these two social networks and can achieve greater reach and attractiveness.

Thanks to customizable collections and some simple design tools, brands are able to showcase featured products and bring them to life through a better shopping experience, allowing them to impact older consumers, who have more purchasing power.

On the other hand, direct sales through TikTok are becoming more and more popular among the younger generations (millennials, GenZ and Gen Alpha), thanks to its less intrusive advertising formats (such as spark ads, which favor content created in collaboration with influencers) and, eventually, livestreaming commerce.

Monitor product performance

Optimizing the customer journey within social networks, from discovery to purchase, allows brands to measure their efforts in social commerce campaigns and focus on standard measures of measurement, such as cost per purchase, average value of the order or the ROAS.

Some aspects to consider:

Skan for iOS. This is a new challenge for brands, because according to Apple’s policy changes, consumers must accept that ADT’s social application asks them to share data. However, this does not seem to be a major problem and the platforms are able to model the data graphically so that the algorithms optimize the campaigns. More expensive items. Higher value purchases are more thoughtful, so optimizing campaigns and positioning them in the funnel helps mitigate friction. In this sense, the growth tests and mixed media modeling (MMM) will serve to measure the general purchase health of a brand. Exclusive promotional codes. A good strategy for live broadcasts is to include discount or promotional codes valid for a certain time.

Photo: Depositphotos

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