A world of opportunities ahead
Businesses have traditionally used social media as a marketing tool to build their brand, increase their visibility, and connect with current and potential customers. In the United States, forecasts suggest that at least nine of every ten companies had used this channel for marketing purposes in 2022. While advertising campaigns remain fundamental to targeting and engaging the right audience, generating conversion through them has become increasingly difficult.As a result, more and more brands and retailers started offering the possibility to make purchases directly from their social networks. According to a 2021 study, nearly eight out of ten U.S. businesses anticipated selling on social media in the following three years. Social commerce has piqued the interest of companies of all sizes. But for small and medium-sized enterprises, it is proving to be a game changer. Social commerce allows them to test their idea directly in the market without the hassle and commitment of an e-commerce site.
Gen Z and millennials, drivers of social commerce
Social media advertising influences U.S. consumers’ shopping behavior, regardless of age. However, the leap to buy from these platforms has been driven primarily by newer generations, namely Gen Z and millennials. During a 2021 survey in the United States, almost half of social media users between 14 and 34 years old had made at least one purchase through this channel in the previous year. While Facebook was the number one platform for social commerce in every demographic cohort, Instagram stood a close second among younger shoppers.The ability of social media algorithms to detect user preferences and provide personalized recommendations has been key to winning over buyers in this age range. For many Gen Z and millennial shoppers, social platforms have become a go-to resource for product search and discovery. So much so that, for at least one in two U.S. shoppers in that age group, these networks appear to be preferable for learning about new products than online searches.
