The Role of Social Commerce: How Brands are Leveraging Social Media Platforms to Drive Sales

According to a recent study, around 71% of small-to-medium-sized businesses are using social media as a marketing platform in 2024. This isn’t exactly a new thing.

Ever since Facebook was launched back in 2004, businesses were quick to realise the opportunities that could come with co-existing in the same social space as their consumers. Over the next two decades, social media became one of the most profitable digital marketing platforms, helping companies to connect directly with customers and advertise in a more seamless, efficient manner.

But as the last couple of decades have gone on, plenty more businesses have been using social media in another way. That is, to utilise platforms as a means to sell their products, as well as market them. This is known as social commerce: the process of marketing and selling products directly through social media platforms.

Understanding the Role of Social Commerce

As of 2024, around 5.04 billion people around the world use social media – that’s over half of the global population. Because there are so many people checking their social platforms every day, the platforms themselves have become a prime space to connect with consumers and subsequently build relationships.

It’s not random, either. The businesses that have succeeded in social commerce are not the ones that spam their feeds with advertisements. Social media is not just another cog in the ever-turning digital marketing wheel, it is a journey in its own right. A lot of time is taken to build relationships, nurture consumers, and offer products that are valuable to them.

Understanding an Audience

This is most notably achieved through social listening: the process of identifying and assessing specific segments of an audience. In the last few years, especially, AI software has been utilised to monitor, track, and analyse social media discussions, helping businesses to recognise what their consumers want and offer it to them more seamlessly.

This is the same kind of thing happening in the iGaming industry. Right now, new AI tools are being used to segment online players into groups based on their preferences, characteristics, and behaviour. By doing this, iGaming companies can provide more personalised features for players, from targeted roulette features to welcome bonuses.

With the online gaming market sitting at around $110 billion in 2024 – compared to $35 billion in 2013, before mainstream AI-driven personalisation was a thing – it’s clear how much personalisation can drive sales and generate profitable leads.

Understanding the 2024 Market

The reason we’ve noted how brands are leveraging social media platforms is not necessarily to lecture or even to educate – there are plenty of more in-depth tips on social listening that can be found online. It’s to demonstrate how much work has to go into getting it right.

As mentioned before, the vast majority of businesses will be using social media in 2024, and with platforms like Instagram, Facebook, TikTok, and Pinterest nurturing businesses with built-in commerce features, it won’t be long until every business uses them as an e-commerce avenue as well as a marketing one. The business world moves fast, after all, and the digital world even faster.

In fact, over the next three years, industry experts are estimating that around $735 billion will be generated from e-sales, and with 81% of shoppers primarily using Instagram and Facebook to find their products, social media has become the most successful tool in a business’s arsenal.

With this in mind, it’s important for businesses thinking about integrating social media into their e-commerce strategy to begin actioning their plans. If they don’t, then those crucial connections will take longer to form, and it’s likely that they’ll fall behind the pack as a result.

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