Social media commerce is booming like never before

By: Trademagazin Date: 2023. 04. 05. 11:07

According to Deloitte’s forecast, the number of users who shop on these platforms will increase to 5 billion worldwide by 2023. Influencers not only inspire, but also encourage the purchasing power of Generation Z, which has an ever-increasing purchasing power, and hyper-targeted advertising entices users with personalized offers.

Although the market for commerce linked to Facebook, Instagram and other social platforms was initially fueled by a spike in interest during COVID-19, their popularity seems to remain undiminished. According to a 2021 study, about one-third of American consumers have ever made a purchase directly on social media, and even more said they viewed a product there first during the shopping process.

But what is behind the growth? Largely the rise of the “creative economy,” in which influencers and content producers use their influence to promote, advertise, and sell products to their audiences. These online actors have a global reach, with at least 60 percent of people in the US, UK, Germany, Brazil and Japan claiming to follow an influencer. In order for fans to become repeat customers, content producers must continually build a relationship with their followers and encourage them to embrace the lifestyle depicted in the photos. Foreign celebrities can earn up to thousands of dollars per post, although the remuneration depends largely on the number of followers.