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Ever notice all the ads from various companies when you’re posting on Facebook, Pinterest or Instagram?
Since social media channels such as these started allowing advertising from businesses on their platforms, social commerce took off. After all, people are already spending a great deal of time on these sites, so placing ads right in front of them just makes sense, right?
Over $30 billion was made directly from various social networks in 2015, and over 59% of online marketers believe social commerce will be the biggest trend this year.
Considering how popular and effective social commerce is and continues to be, it’s worth keeping watch for the upcoming trends that are likely to emerge in 2016.
Here are some stats showing the average order generated from each social media platform.
Instagram has certainly made a name for itself in the world of advertising, and is expected to generate more strength this year. With more and more consumers using mobile apps to make purchases, it should come as no surprise that Instagram is making such waves. Right now, Instagram offers four call-to-action icons: ‘sign up’, ‘shop now’, install now, and ‘learn more’. After clicking, consumers are taken to a company’s website or app that offers a chance to sign up for an email subscription.
More and more companies are anticipated to make use of videos in their ads placed on social media sites thanks to innovative developments. For instance, Google announced last year shoppable advertisements for YouTube that allow users to purchase items they see in pre-roll ads just before the video they want to watch starts playing. Live video social commerce platforms are also becoming more popular, such as Your Brandlive, which is a combination of live videos and comments/questions from consumers. It’s engaging, and it’s sure to pick up speed in 2016.
Online reviews and ratings have already had a big influence on the reputation and revenues generated by companies. In particular, social media influences the purchasing decision of more and more consumers. Conversions can be positively affected by reviews and ratings on social media. The average conversion rate on Facebook is 40% higher, and for Twitter, 8.4 times more. These reviews on social media channels provide proof that they result in higher sales conversions.
Using messaging apps to sell goods and services is among the biggest social commerce trends that’s anticipated to make it big in 2016. Right now we’ve got messaging app WeChat, which allows verified sellers to generate shops with the app. Facebook might start monetizing Messenger and WhatsApp and may start charging for emojis, stickers, and sponsored accounts. In this way, Facebook will provide an opportunity for users to perform transactions through mobile or online platforms with its Messenger app, such as buying groceries or reserving a table at a restaurant.
Companies are expected to start converting all their user-generated content into product catalogs and generate sales from user-submitted videos and images. Considering the fact that brand engagement increases by 28% when people see useful information and user-generated content, this is a smart move. Audiences can be targeted to co-create product designs, which is helpful to find out exactly what consumers want, and give it to them.
What do you think? Do you currently advertise on Facebook or Instagram, or any other social platform? Feel free to comment!