ClickZ Paid Social Marketer Newsletter - 10.10.2024

The Value of Social Commerce in the US in 2024

Author

Priscilla Soedarpo
October 10, 2024 • Estimated Reading Time: 7 minutes

Live From Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from AdWeek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

Social commerce in the US is poised for significant growth, with sales expected to reach $101.38 billion this year. This surge is primarily driven by existing buyers increasing their spending, despite a slowdown in new social buyer growth. Notably, Gen Z is leading the charge in holiday shopping via social platforms, heavily influenced by creators. TikTok and Facebook emerge as the dominant platforms, with TikTok particularly popular among Gen Z, while Facebook remains favored by older generations.

The holiday season presents a unique opportunity for brands, especially in the apparel sector, to leverage social commerce. Although only 12% of US consumers plan to buy holiday gifts through social media, exclusive discounts and promotions can entice budget-conscious shoppers. Apparel brands stand to benefit the most, as clothing purchases are expected to dominate Black Friday and Cyber Monday sales. Positive online reviews and influencer partnerships are crucial strategies for driving these sales.

As the landscape evolves, brands must critically evaluate their social commerce strategies. The dynamic nature of consumer behavior, particularly among younger demographics, underscores the importance of innovative approaches. By harnessing the power of social platforms and understanding consumer preferences, brands can effectively navigate the complexities of the holiday shopping season and capitalize on emerging trends.

Mobile commerce is crucial for US holiday sales, with 53% of digital sales from mobile, according to Adobe Analytics. This trend highlights the importance of mobile strategies for marketers. Adobe's data, based on extensive analysis, underscores the growing role of mobile in ecommerce, especially during the holiday season.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More Specialty Bites 🍪

Omnichannel campaigns, powered by data segmentation, revolutionize marketing by delivering personalized messages across multiple channels. By targeting specific customer segments, businesses enhance engagement and conversion rates. This strategy optimizes resource allocation, ensuring messages resonate with audiences, ultimately driving marketing success and achieving business goals. Ready to transform your marketing?

Video ad spending in the US is significantly higher than in other countries, driven by social and connected TV platforms. Advertisers prioritize scalable, high-quality ads, though measuring effectiveness remains challenging. Consumers prefer longer ads, yet shorter ones are more common. Understanding these trends can enhance your advertising strategy.

Many advertisers overlook that 25% of CTV ad inventory is only purchasable via linear TV. While streaming is popular, linear TV still offers significant reach. Advertisers should consider linear buys to access full audiences, as streaming-only strategies may limit exposure to just 10% of impressions.

Performance Platters 🍽️

Social ad spending targets younger audiences with low-cost products, leveraging platforms for direct-response ads and video formats. Media and entertainment use social media for game installs amid reduced TV spending. Retail and CPG dominate social ad spend, driven by competition from Shein, Temu, and D2C players.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division