Social for retail is a growing space, from embedded Buy buttons on social to referring traffic to retailers’ websites and apps via social posts. Platforms are creating more and more options for brands and consumers, and brands need to consider social as a serious avenue for sales. According to the Internet Retailer’s Social Media 500, the top 500 retailers earned $3.3 billion from social shopping in 2014, up 26% from 2013. That is well ahead of the 16% growth rate for the overall e-commerce market in the U.S.
Business Insider recently published a report showing that social is driving more retail traffic than any other online channel. Additional findings below:
Key points from the report:
- Social media increased its share of e-commerce referrals nearly 200% between the first quarters of 2014 and 2015.
- For retailers to maintain these social gains, they will need to pay special attention to mobile, where social engagement with retail content is still limited.
- Facebook continues to grow its lead as the dominant social commerce platform. Facebook accounts for 50% of total social referrals and 64% of total social revenue. The site’s changing demographics could make older consumers a strong target for retailers leveraging the platform.
- Pinterest is a major social commerce player despite a relatively small user base. The pinning platform drives 16% of social revenue despite an audience 6.5 times smaller than Twitter. New buy and action buttons on retailer posts should make Pinterest an even stronger referral and revenue engine for brands.
- Twitter is losing its influence for mass-market merchants, but it could still have a role to play among sporting and event marketers, especially for location-based promotions. Recently, NFL and NBA teams have used Twitter to sell game tickets and merchandise.
- Instagram doesn’t drive significant sales activity for retailers, but high-end companies have been leveraging the platform for branding purposes. New Buy buttons on paid posts, as well as increased targeting capabilities, could make the app a more important direct-response driver.
It is no surprise that people are spending more time on social not only consuming content but also making purchase decisions, and ultimately purchases. As we think about helping our brands navigate the digital space, social provides enormous value for retail, mobile, and beyond.
To read the Business Insider article that inspired this post, click here.