As 2024 advances, the importance and reach of paid social media advertising will only continue to grow. For online retailers that want to stay relevant and competitive, it’s important to stay on top of the latest trends and strategies.
Here are six social commerce trends you should be aware of to maximize your results and drive growth in the coming year, based on insights from Multichannel Marketing Report 2023 by DataFeedWatch, a comprehensive analysis of the global ecommerce landscape based on a global sample that includes more than 60 countries and 16,000+ online stores and brands.
1. Social commerce value will keep on growing.
The value of social commerce continues to grow rapidly and is shaping the future of online retail. This steady growth is being driven by an increasing number of social media users (expected to reach 5 billion worldwide this year) and the emergence of the “creator economy,” with influencers playing a significant role in promoting and selling products to their audiences.
According to research from Accenture, social commerce is expected to outpace traditional ecommerce, growing 3X faster and reaching an impressive $2.9 trillion by 2026, more than doubling its current value.
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This forecast highlights the tremendous potential and increasing influence of social media platforms as key drivers of consumer purchasing behavior. As social commerce gains momentum, it is becoming crucial for businesses to leverage these platforms effectively to take advantage of the enormous opportunities they offer and still remain competitive.
2. E-sellers will leverage social channels more than ever.
Recent data shows that online retailers are increasingly relying on social media advertising platforms to reach and engage with their target customers, while search-based channels such as Google Shopping and Bing are becoming less popular. In fact, from 2022 to 2023 the use of social media channels for retail advertising increased by more than three percentage points, while search channels decreased by over seven percentage points, according to the Multichannel Marketing Report 2023.
These stats highlight a major shift in the online advertising landscape and underline the importance of including social media advertising in online retailers’ ecommerce strategy.
Social media channels allow retailers to create interactive and engaging content, provide customers with appropriate recommendations, answer queries and leverage user-generated content (UGC) to generate and maintain customer engagement, and much more.
Online retailers use social media to sell products because it provides them the opportunity to build brand awareness, create a personalized experience and connect with their target audience on a daily basis. Brands that cultivate loyal followership on social media are often rewarded with increased spend and greater reach among new audiences.
Social commerce continues to evolve and has the potential to shape the wider shoppable media landscape. The integration of intuitive shopping and payment experiences across digital platforms is expected to become more widespread, and most digital experiences will be considered shoppable in the future. Already today, more and more social commerce platforms like Facebook or TikTok enable users to make purchases directly on their platforms, eliminating the need to visit a separate ecommerce website.
3. Facebook advertising will continue to be an obvious choice.
Throughout 2022 and 2023, Facebook continued to maintain its prominent position as the leading social advertising platform across all ecommerce sectors. Its widespread popularity and extensive reach make it an invaluable tool for online retailers. With its huge active user base of nearly 3 billion and robust advertising capabilities, Facebook provides businesses with a powerful means to connect with their target audience and showcase their products effectively. By leveraging Facebook’s advanced targeting options and engaging advertising formats, retailers can maximize their visibility and drive conversions.
The Multichannel Marketing Report 2023 shows Facebook consistently outperforming the former king of online sales, Google Shopping, in a number of categories, including fashion apparel. Also in the top 10 for apparel are Pinterest and TikTok, which is no coincidence — all of these channels can present products in an eye-catching and illustrative way and are platforms for people who want to be inspired.
Facebook is also a very strong runner-up to Google Shopping in industries such as furniture and health and beauty, and comes in third in categories such as electronics and home and garden.
4. Popularity of TikTok advertising will continue to grow.
TikTok is still a relatively new social media platform. It has a strong presence among Gen Z, which typically refers to individuals born between the mid-1990s and early 2010s. In the United States specifically, TikTok has a high penetration rate among Gen Z, with 47.4% of active users aged 10 to 29. Yet there has been significant growth in the number of adult Americans using TikTok in the last one and half years as well.
With its growing audience, which currently stands at 1.7 billion users worldwide, it’s worth mentioning TikTok’s growing popularity as an advertising channel in certain industries. Advertisers have been boosting their presence on this platform in product categories such as health and beauty, apparel and accessories. Online retailers operating in these specific sectors in particular should not overlook TikTok’s potential for their advertising strategy.
In 2022, TikTok was well outside of the top 10 most-used advertising channels in the apparel product category; however, from 2022 to 2023 fashion advertisers doubled their use of TikTok for advertising, making TikTok the ninth-best channel in this industry in 2023.
TikTok is also becoming increasingly popular among health and beauty companies, with usage growing 5X from the beginning of 2022 to Q2 2023. This made TikTok the seventh most popular channel for the health and beauty sector. As in the case of apparel, in 2022 TikTok wasn’t even in the top 10 for this product category.
5. Great potential for doubling up on Google and social simultaneously.
Google and Facebook are the ultimate power duo that every advertiser should consider, regardless of their company’s specifics. These two major channels were used simultaneously by almost 46% of all online advertisers in 2023, according to the Multichannel Marketing Report 2023.
The winning strategy of using both platforms at the same time has gained tremendous traction over the years, and this trend shows no signs of slowing down in 2024. When it comes to Facebook, it’s hard to ignore that platform’s undeniable influence on advertising strategies. With more than 57% of businesses incorporating Facebook ads into their marketing mix, it’s clear that this platform is a force to be reckoned with. Best of all, Facebook’s feed requirements align closely with that of Google, making the process of getting your product catalog up and running easy and not time-intensive.
Online advertisers should not miss out on the exceptional potential of using these media powerhouses in tandem. With their user-friendly interfaces and proven track records, marketers can effortlessly connect with their target audience and achieve remarkable results.
6. Millennials dominate the social commerce market.
The social media audience in 2023 was estimated to be approximately 4.9 billion people worldwide, a significant increase from previous years. In terms of demographics, the largest age group among social media users is the 25-34 age group, millennials.
Although millennials currently dominate the social commerce market, the increasing age and purchasing power of Gen Z, the largest generation worldwide, should not be ignored. Gen Z is also highly active on social media platforms, with many using them for shopping inspiration.
In fact, social media usage spans various age groups. Young adults were early adopters of social media, but usage by older adults has also increased in recent years. In terms of gender, the distribution on social media platforms is approximately 44% female and 56% male, although it’s worth mentioning that all of these statistics vary depending on the specific country or region. For example, in India Instagram was the most used social media platform in 2023.
In 2024, paid social trends will shape the ecommerce landscape. Social commerce value is rapidly increasing, offering lucrative opportunities for online retailers. That’s probably why social channel usage is also on the rise, while traditional search methods are declining.
Jacques van der Wilt is a leader in the feed marketing industry and an entrepreneur. He founded DataFeedWatch (acquired by Cart.com), one of the largest feed management companies in the world, which helps online merchants optimize their product listings on more than 2,000 shopping channels in over 60 countries. Prior to that, he has held leadership positions in both the U.S. and Europe. He is also a seasoned guest speaker at industry events and mentor at Startup Bootcamp.
