Social Commerce is Here,
and Here to Stay

Social commerce is the practice of buying and selling products directly through social media platforms. It combines the convenience of e-commerce with the engagement and influence of social media, allowing users to discover, shop, and make purchases seamlessly within their favorite social networks.

Social commerce is not just a trend, but a fundamental shift in how we shop and interact with brands. For years, many dismissed social commerce as a passing fad, but Social commerce is not going anywhere, and here’s why.

$3.8 Trillion Channel

Let’s start with the numbers. By 2030, social commerce is estimated to reach a staggering $3.8 trillion in value. This is not a figure associated with a passing trend. When you put a trillion in front of something, it’s a clear indicator that we’re talking about a substantial and enduring market.

Social Commerce and Generation Z

The key reason why social commerce is here to stay is simple: consumers. As a member of Generation Z myself, I can attest to the fact that we love social media. But more than just scrolling through feeds, we are active participants. When we see a product we like, 87% of us are likely to click on the ad. Social media has become our top source of inspiration for shopping, with 97% of Gen Z using platforms like Instagram to discover new products and trends.

Take, for instance, the phenomenon of “#TikTokMadeMeBuyIt,” with 2.3 billion views. This trend illustrates the immense influence social media has on our purchasing decisions. If your brand is not leveraging these platforms, you’re missing out on a vast pool of potential consumers.

Scroll-Stopping Dynamic Product Ads

Now, let’s address the challenge of creating ads that stand out in the sea of content. The average Gen Z user scrolls almost 9 kilometers on social media every 20 days. With such a rapid pace, your ad needs to be truly exceptional to capture attention. I believe there are three essential elements to a “scroll-stopping” ad: visual impact, relevance, and enriched data.

Visual impact speaks to the design and aesthetics of your ad. It needs to look good to grab attention. Relevance ensures that your ad speaks directly to the viewer, addressing their needs and interests. And enriched data provides real-time updates and information, creating a sense of urgency and FOMO (fear of missing out).

Dynamic product ads are a powerful tool in the social commerce arsenal. These ads combine visual appeal with data elements, allowing for highly personalized and targeted advertising. Whether you’re on social platforms or Google, dynamic ads offer a way to reach consumers effectively.

However, the road to successful social commerce is not without its challenges, especially for larger organizations. The disconnect between the ecommerce team managing product data and the creative team designing ads can lead to inefficiencies and missed opportunities. This is where integrated data management solutions come into play.

Data Infrastructure

Integrated data management solutions (or combine feed management and creative tools into a single platform), eliminating the need for multiple software and improving collaboration between teams. Whether you’re a small e-commerce shop or a complex organization with vast product catalogs, integrated solutions streamline the process and ensure data and creatives are in sync.

The Era of Social Commerce

In conclusion, social commerce is not just a passing trend; it’s a transformative force in the retail landscape. With consumers increasingly turning to social media for shopping inspiration, brands must adapt and embrace this new era of commerce. By understanding the key elements of a successful social commerce strategy and leveraging integrated data management solutions, businesses can thrive in this rapidly evolving digital marketplace.

Key Points from Thomas Wilson’s Talk on Social Commerce

At the first eCommerce Jam Session, Copenhagen in Feb 2024, Thomas gave a powertalk on Social Commerce from which this article was also based on. Here are some of his key points.

• Social Commerce is Here to Stay
  • Predicted to reach $3.8 trillion by 2030.
  • 97% of Gen Z uses social media as their top shopping inspiration.
  • Trends have shifted; people now look online for products and influencers’ recommendations.
• Creating Scroll-Stopping Ads
  • Challenges in creating effective ads due to Gen Z users scrolling 8.84 km in 20 days.
  • Three crucial elements: Visual impact, relevance, and enriched data.
  • Enriched data means real-time updates to maintain relevance, especially for products like airline tickets.
• Struggles in Complex E-commerce Setups
  • All organisations from small to large enterprise may struggle with back-and-forth between the e-commerce manager and graphic designer.
  • In complex setups, managing millions of products with complex data sets becomes challenging.
  • Disconnects between product feed optimization and dynamic ad creation can cost organizations money.
• Integrated Data Management Solutions
  • A solution to the disconnect between product data and creative ad design.
  • Combines feed management and creative tools into one.
  • Types include integrated data management and integrated creative management solutions.
• Next Steps
  • If organizations recognize these struggles, they should consider integrated data management solutions.
  • A company like Channable can help with these challenges, offering solutions to bridge the gap between data and creative teams.

Adapting to the changing landscape of social commerce is of critical importance, offering insights into overcoming challenges faced by organizations in creating effective ads and managing product data.