The Impact of Social Media on Social Commerce

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With each update of Instagram, the team brings their users new and more innovative ways for creators and businesses to grow and share their content on the platform. For instance, in August 2014, business profiles were launched, allowing businesses to officially promote their brand, services, and goods. Now, thanks to the update in November 2016, Instagram users can participate in social media shopping by buying an item off a brand in just a few clicks from the app itself. This feature allows for social commerce and is a segment of e-commerce. 

E-Commerce

E-commerce is the online shopping experience in which a person shops through a website or the brand’s app. Usually, this process looks like a person accessing the store online, viewing the products, checking out, then completing their purchase. Additionally, compared to social commerce, e-commerce applies more digital ads, social media content, and other marketing strategies in order to direct customers to their online store. A problem, however, is that some users will abandon their cart or completely lose their interest due to some extra steps in the purchase journey. Social commerce has made that easier for customers. 

Social Commerce

Social commerce, a segment of e-commerce, is a social media shopping experience in which a person shops with brands through social platforms. It allows users to directly checkout from these platforms, and in other cases, users can also be directed to the brand’s product page where they can also complete their purchase at. With the high increase of social media users over the years, social commerce has grown significantly and will continue to do so. 

https://www.insiderintelligence.com/insights/social-commerce-brand-trends-marketing-strategies/

Insider Intelligence, a digital market research company, observes that the social commerce market has grown enormously, from a steady rise in 2017 to a high increase during COVID-19 in 2020 to 2022. They have represented their observations and results in the bar chart above. As implied, Insider Intelligence also expects social commerce sales to follow the trend and continue to increase throughout 2023.

Instagram & Facebook

It goes without saying that Instagram and Facebook are the top social media platforms today, followed by TikTok, Pinterest, and SnapChat. Each platform, although similar, attracts different types of audiences and has a unique purpose, allowing businesses to choose which platform will benefit them the most. 

Instagram, for instance, is the ideal platform for businesses to promote their brand imagery while they gain sales. With the ability to create stories, update the product page, and other features, active engagement can turn into higher sales. If a business does not have active engagement, however, and are a small- or medium-sized business, they can focus on selling their products on Facebook. This platform is very good with featuring products based on the customer’s preferences and search history when accessing Facebook Shops.

TikTok & Pinterest

Other platforms such as TikTok and Pinterest may not be up to par compared to Instagram or Facebook, but they still have their own benefits. TikTok has the ability to make users and brands go viral, but of course, this is not guaranteed. Instead, what TikTok can do for everyone is introduce the business to new potential customers by incorporating product ads into their For You page. 

Pinterest on the other hand enables businesses to focus on their products rather than their reputation since the platform is more so used by customers for inspirational content. When businesses share their posts, they can create Product Pins, displaying the pricing and information of that product. As such, although the platforms may share similar features, each platform can attract different audiences and be used by different businesses to their advantage.

Their Impact

As a whole, these platforms have greatly impacted social commerce today and will continue to do so in the following years. Their unique advantages have played an important role in aiding many businesses gain sales over the years. With over a billion users active on social media, there are a lot of potential customers scrolling through their feed and finding something they like. With a few clicks as convenient as it is, customers will hop in and out of the checkout phase. 

Some businesses have even partnered with digital marketing agencies to analyze which platform is the correct one for them. They also share ideas that will generate engagement, resulting in new potential customers to click on their product page. If your business is in need of a team like this, reach out to Bright Age and request a consultation today! We’re happy to share our knowledge, and work with you!

Importance and Benefits of Social Media Reporting

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Ever since social media has become one of the most popular engagement platforms, businesses have begun to recognize its value. But did you realize that when starting a business, especially one online, social media reporting can significantly impact your company? Each social media report assists you in determining how your business is doing and which platforms are working best for you. Another useful feature of reporting is providing information on optimal times to communicate with your customers or prospects. Understanding the importance and benefits of social media reporting for businesses can do wonders for you.

The Advantages of Reporting

  1. Content strategies (gives you the blueprint of how your content is performing, allowing you to detect flaws)
  2. Schedule insights (provides insights for the best times and days of the week to interact with customers, as well as which topics are popular on a particular day)
  3. Unique platform strategy (each platform is different and needs a strategy tailored to that algorithm)
  4. Customized measurement and social tracking (a report is personalized to each need, resulting in a large amount of data that aligns with your business strategy)
  5. Insight into industry competitors (involves analyzing your competitors and contains data on them, knowing what your rivals are doing will help you create effective strategies)

The Ins and Outs of It

Social media has become a goldmine for businesses worldwide. Generating leads and learning about your consumers’ wants and needs can provide you with valuable information. Yet, at often times, many companies struggle to transform these insights into action. The challenge is determining whether you can convert these trends into usable knowledge, thus improving your business. The importance of a social media report can only be recognized if you know how to incorporate each of these insights into your report.

When businesses are looking for platforms to advertise their products or services, Instagram, Facebook, Twitter, and TikTok are the places to go. Even if you have a presence on one or more of these platforms, knowing how to position your business on each one is essential if you want to see results. Because each platform has a unique algorithm, the way you showcase your business on one platform may not work on another. If your company wants a more detailed report, there is one that includes a global analysis of your brand’s placement and activity. 

The Benefits of Version 2

  1. Identifying emerging markets (by analyzing these markets for your brand, you may be able to identify new areas in which your products or services can thrive)
  2. Prepare for crisis management (by keeping a record of any previous mishaps and how they were handled)
  3. Identifies companies that are commonly associated with yours (by using social media measurement tools, you’ll gain a better idea of your brands positioning against them)
  4. Discover interests with lines of business (this can better help you understand your audiences’ interests, therefore detect new opportunities for growth)
  5. Helps you see what platform is working in your favor (this includes your engagement, shares, and sales. Can also advise you on which platforms to focus on)

These are just a few of the many examples that might help you put together your report overall. This can be a bit tricky, but creating this report can help you with your brand strategy and identify strengths, weaknesses, and opportunities. If you feel like you would need some type of help with understanding the importance and benefits of social media reporting for businesses in general and how it can impact yours, reach out to a social media marketing agency!

Here at Bright Age, our agency will provide insights into your social media report and show you how it can maximize your company’s conversion goals.

The Growth of E-Commerce During the Stay at Home Order

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During COVID-19 and the stay at home order, the shift from in-person purchasing to e-commerce has impacted businesses everywhere. With travel, hospitality, and non-essential retail losing sales and filing for bankruptcy, new marketing strategies and online sales have become a necessity for the survival of companies.

Social media marketing agency photo of plants, glasses, desk and ipad for blog post

Despite this decrease, the pandemic has allowed for a growth in companies that have a successful online presence or who already made most of their online retailing.  People have also been buying things online that they have never previously considered; online grocery, educational software, health and wellness, and video conferencing software has received more demand than ever before and with ever-growing numbers. Social media marketing agencies have a real opportunity to increase sales in these areas as people are scrolling through Facebook and Instagram more often. In April alone, online sales grew by 50% and online grocery sales hit $7.4 billion in June. Even with the reopening of some brick and mortar stores, it is expected that many of these patterns will stick. Brands like Warby Parker and Glossier have made up the money that they would have made in person from their online sales.

Social Media marketing agency screenshot of warby parker glasses and coffee for blog post

The businesses that are benefiting from the stay at home order span other than the obvious, like Amazon, and companies selling nonperishables and emergency supplies. With no need to spend money on travel, luxury, or brand name items or expensive restaurants, money is being allocated to activity-based and practical products. From specialty wines, books, home decor, and pet products, more time at home means there is more time for things like cooking, reading, spending time with pets, or a home renovation project. 54% of Americans have also reported purchasing something from a brand that is “new to them, “creating an opportunity for many smaller, new companies with a successful online presence.

Marketing strategies have als

o shifted due to the lack of people leaving their houses and an increase in the amount of time people are spending on social media. Although the trend of people spending so much time online is not expected to stay, the transition to using social media marketing agencies over other forms of advertising will. The timing for when and how people buy products has also shifted with more people buying one item per day as opposed to many items at once. This indicated that online marketing and personal branding could make an even bigger impact at this time as people are making buying decisions based on social media posts and articles recommending products or companies. Consumers have also placed a larger emphasis on a brand’s ethics, and more time is spent doing research into how a company treats its employees and sources their materials. This indicates a bright future for sustainable and fair trade businesses as well as a growth in these practices across the board.

Social media marketing agency photo of online buying with debit card for blog post

Despite the difficulties of the time that we live in, quarantines have alleviated many severe time shortages that many people and families faced pre-COVID-19. This positive change is likely something that people will not want to give up when stay at home orders end and time goes on. The ancillary effect of COVID-19 on consumer behavior is enormous and unlikely to revert back the way it was, and the ability to not spend time at the grocery store or drive somewhere for a specialty item is appealing to more and more people. Office workers are also finding that they can do the majority of their job from home, eliminating the need to travel for work. It is expected that by mid-2021, 25% of total retail sales will be online causing e-commerce brands to emerge as victors even as the economy and our lives go back to normal. If you’re looking to expand your business’s online presence to market yourself as an e-commerce brand, connect with Bright Age at https://brightage.com.