Social commerce — social media combined with online shopping, is forecasted to grow compoundingly by 30.8% annually from 2020 through 2026
The world has seen drastic changes in the way people shop in the last 5 years. From gradually introducing online shopping and e-commerce as a concept, to hastening the paradigm shift in shopping modes, social commerce definitely is showing its prowess. What’s good is that it’s showing it hasn’t reached its full potential yet.
In an article published on Sa, Tamie Gaston, Marketing Consultant for TLS Marketing Solutions said that with over 3 billion people using social media nowadays, there is no way you can deny that it is one of, if not the, best touch points with its high traffic.
According to the same article, here are 5 reasons why you need social media for your business:
Build your brand presence and awareness
Gives your brand a personality
A new way to engage
Builds website traffic
Be there or be square
“Social network advertising spending in the United States from 2016 to 2022” by Statista revealed that social media has now become one of the brands’ most favorite advertising avenues. In 2020, US alone accounted for 40 billion US dollars of ad spend on social media; in 2022, just 2 years after, the ad spend is now forecasted to grow by a whopping 40% landing at 56 billion US dollars. This shows much of brands’ sentiments towards social media as a way to engage and, now, sell to their customers.
All that said, social commerce — a subset of e-commerce that combines social media and online shopping, has seen massive growth brought about by the COVID-19 pandemic. In a growth forecast by Statista titled “Value of social commerce sales worldwide from 2020 to 2026,” it was said that social commerce is set to grow by a whopping 30.8% compoundingly annually from 2020 through 2026, starting from 560 billion US dollars in 2020 to 2.9 trillion US dollars in 2026.
It was said that one for every two Asians have purchased something online. China with its giants TaoBao and Alibaba is in the frontrow.
In conclusion, is it necessary for businesses to be in social media, you ask? Yes, it is! The growth seen and forecasted in social media advertising spending and social commerce will convince you it is the way to survive and thrive.