Social commerce is one of the defining industries of the 21st century and will likely continue to define the next several generations of shopping. It is a rapidly growing form of shopping that is expanding across the globe, and all marketers should be aware of its power. Social commerce is a form of e-commerce that is done through social media. If you’ve ever purchased something from an Instagram Ad or Facebook Ad, then you’ve engaged in social commerce.
Social commerce has rapidly risen in the past several decades. It has gone from a small, fledgling industry to an absolute juggernaut. According to Influencer Marketing Hub’s State of Influencer Marketing 2022 Report, the value of social commerce sales worldwide is estimated to be $958 billion in 2022. This is an eye-popping number, but it didn’t happen this way overnight. Social commerce sales have been driven up by the rise of the creator economy and the growth of the social media industry.
Billions of people around the world rely on social media. And they rely on it not just for fun pictures of friends and family, but as genuine town squares. This means they fill multiple purposes within the lives of users. Social media’s use cases encompass everything from dating apps to retail platforms, and this is how everyday people focus their use of the platforms.
It isn’t just a small portion of people using social media to drive their purchases; it is a significant one. According to Insider Intelligence, 36% of internet users in the United States purchased from a social media platform in 2021. Many of these buyers are millennials and Gen-Z, who are aging into the dominant spending cohort.
This means the future of social commerce is exceedingly bright. It is already a massive, important industry, and all indicators have its growth set to continue. According to Influencer Marketing Hub, by 2025, social commerce will account for 17% of all e-commerce spending.
Influencer marketing is an industry that is built around the rise of social commerce. It has similarly experienced a meteoric blast into the mainstream of marketing and is now a staple of strategies for brands worldwide. Influencer marketing is a perfect way for brands to capitalize on social commerce’s increasing relevancy in the marketplace by utilizing the power of the content creators on social media platforms to work on their behalf.
Like social commerce, influencer marketing is now a juggernaut of an industry that everyone uses, from corporate titans like Nike and Pepsi to small brands trying to build a customer-base post-launch. According to the Influencer Marketing Hub Report, influencer marketing is set to grow into a $16.4 billion industry by the end of 2022. This comes after being worth $1.7 billion in 2016. It has been a rapid rise for the influencer marketing industry, and that rise is likely to continue alongside social commerce.
Influencer marketing is the perfect companion to a social commerce-driven strategy. The key to social commerce is standing out on the feeds of the people you are targeting. Influencer marketing allows businesses to do that. Whether you are Instagram, Facebook, or TikTok influencer marketing, there are countless great content creators on every social media platform with high-level experience partnering with brands to drive sales and increase brand awareness.
Influencer marketing has a high ROI and a proven effective model. Brands that partner with the right influencers can have their product or content shared with many different people. Multiple different kinds of influencers align with different budgets, from micro-influencers and nano-influencers to macro-influencers and social media celebrities. This gives businesses a high degree of customization in their influencer campaigns.
As well, there are influencers that align with every niche imaginable, so if your brand is trying to reach a specific niche, like the home décor or fitness niches, you can use niche influencers to drive sales in these specific areas. There are so many different ways brands and influencer marketing agencies can build campaigns to take advantage of the rise of social commerce and carve out a role in this major market.
Joint Sustained Future Growth
For social commerce and influencer marketing, the future looks bright. These two industries are extremely connected, as brands that sell through social media need an effective way to market, and influencer marketing provides that. It offers businesses the chance to leverage the audience, trust, and creativity the successful influencers on platforms have cultivated. As social commerce grows, influencer marketing is sure to continue to grow alongside it.
If you’re looking to launch or improve your influencer marketing strategy, an influencer marketing firm can be a major asset. Influence Hunter is a top influencer marketing agency with years of significant experience helping brands across industries create the influencer programs of their dreams. By developing high-performing, customizable campaigns, Influence Hunter can help businesses achieve the social commerce growth they’ve been searching for. Contact Us Today to find out how we can help your business.