Social Commerce Playbook 2021

 
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Social Commerce Playbook 2021
Social
Commerce
Playbook
2021

           1
Social Commerce Playbook 2021
An introduction to Social Commerce

With the rise in social media     Social commerce was already developing quickly in 2019, but the
                                  pandemic accelerated that progress globally growing 5 years of projection
comes a rise in what is being     in just 3 months. Global e-commerce sales accounted for 17% of total
                                  retail sales in 2020. With that accelerated growth, everyone involved in
called “social commerce.” It’s    digital marketing on social must know their way around the features
ecommerce directly through        available within this marketplace.

social media networks. It’s not   Social Commerce gives you the ability to use social to influence
a redirect to your site, but      purchasing decisions. It brings UGC and Influencer content marketing to a
                                  new level: you now have the ability to measure conversions and put a true
integrated, in-platform           ROI on these campaigns.
features that allow customers     While some platforms have already fully integrated in-app shopping
to buy from you without           abilities, some are still developing. TikTok will be an important one to
                                  watch in the coming months as it has already built out a powerful funnel
leaving the app they are in.      in China that brings in the majority of its revenue there, vs ad revenue
                                  which is the main income for other platforms. Expect to see “streaming
                                  ecommerce” take shape in Europe and North America very soon and
                                  become a model for how digital marketing moves through 2021 and
                                  beyond.

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Social Commerce Playbook 2021
Facebook

               15% of
              Facebook
             users in the
             US use it to
           find and shop
            for products

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Social Commerce Playbook 2021
Main Takeaway: Taking full advantage of the capabilities on
Facebook                                                             Facebook allow you to blanket IG and WhatsApp ecommerce
                                                                     as well. Worth the investment if you are targeting these
                                                                     platforms.

Usage 101                                                    ●   Facebook Marketplace: Marketplace ads (US
 ●   1.88 billion daily active users on average in March         only for now) appear in feed during browsing,
     2021, an increase of 8% year-over-year                      similar to Pinterest, and have seen a marked
 ●   Over 65’s are the fastest-growing demographic on            increase in conversion rates compared with
                                                                 News Feed ad placements (more information)         15% of the social
     the platform. Fewer teens are using Facebook than
                                                                 Shoppable Ads [newsfeed]: can be used             media users in the
     in previous years. 74% of high-income earners are       ●
                                                                                                                  US use Facebook to
     Facebook users                                              to drive purchase through Facebook Shop
                                                                                                                   shop, making it the
                                                                 or to drive traffic offsite
                                                                                                                      second social
Key shopping features                                        ●   Customer Service and Discovery                       network after
 ●   Facebook Shop: Currently open in the US, this                 ○ Users can message a brand directly           Pinterest where they
     mobile first shopping experience launched in 2020                  through Facebook Shop via Whatsapp,           shop the most.
     and allows businesses to create a storefront and sell             Messenger or Instagram
     across all of Facebook’s products - ex. Facebook              ○ Facebook Shops can be found on a
     Marketplace and Instagram Shopping. Facebook                      business page or discovered through
                                                                       IG Stories and ads                                  More info ➔
     Shop’s predecessor, Facebook Shop Pages, is
     converting into Facebook Shop, with a key                     ○ Users can browse the catalog, save
     difference being Facebook Shop allows in-app                      products for later and checkout on the
     checkout, where Facebook Shop Pages only had                      business website or use in-app checkout.
     a click through (more information)                            ○ Soon: Venmo-like QR codes for person to
      ○ Transaction and selling fees may apply                         person payments (more information)
      ○ Expanding to UK and Canada later in 2021

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Social Commerce Playbook 2021
Instagram

                 130 million
              Instagram users
              tap on shopping
            posts every month
               and 50% have
            visited a website to
             make a purchase
               after seeing a
             product or service

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Social Commerce Playbook 2021
Instagram
Usage 101
 ●   1 billion + people use Instagram every month, with each user
     averaging 30 minutes on the app                                            Shopping capabilities:
 ●   81% use Instagram to research products and services                              With 81% of
                                                                              Instagrammers using it as
Key Shopping Features                                                         a research tool, the ability
 ●   IG Shopping: People can visit a shop from Instagram profile, feed,          to complete a purchase
     Stories, IGTV, and Reels. The shop can be customized to match the
                                                                               from any part of the app
     look and feel of the brand. Users can complete a purchase through
                                                                                makes it stand out from
     Instagram checkout without leaving the app. Once purchased, users
     receive notifications about shipment and delivery in the app
                                                                                    other platforms.
 ●   Shopify Integration: For Instagram and Facebook, allowing Shopify
     users to purchase via Shopify Pay (2021)
 ●   Swipe-up and link in bio: Users can access owned websites directly
     from the app, allowing brands to get analytics on customers outside of
                                                                                                   More info ➔
     the Instagram ecosystem if needed

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Social Commerce Playbook 2021
Twitter

          Twitter users spend
             26% more time
            viewing ads than
          on other platforms
          and 53% of people
          on Twitter are more
          likely to be the first
               to buy new
                products

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Social Commerce Playbook 2021
Twitter
                                                                                                          Shopping
                                                                                                         capabilities:
                                                                                                      Brands can link to
                                                                                                    shopping but there are
Usage 101                                                                                          no on-platform checkout
 ●   Monetizable daily active users totalled 199 million                                           capabilities yet. Keep an
     in Q1 2021, up 20% year over year                                                              eye on Twitter because
 ●   Twitter ads reach 5.8% of the world’s population                                               these features will roll
     over 13                                                                                               out soon.

Key Shopping Features (case study)
 ●   Ads: Twitter is all about the promotion of products
     and connecting with your targeted audience to         What to look forward to
                                                                                                               More info ➔
     create loyalty and drive them to your brand. Ads       ●   Twitter is experimenting with ecommerce
     that generate conversation can convert                     options, including adding a ‘Shop’ CTA
 ●   Customer Service: Customers can interact directly          button
     with your brand in real time - public conversations    ●   “Eventually people might transact on
     on Twitter can impact brand perception and bring           Twitter,” says Bruce Falck, revenue product
     people closer to cart                                      lead at Twitter, adding that the company’s
                                                                focus is first on helping shoppers research
                                                                purchases on the platform rather than
                                                                transacting

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Social Commerce Playbook 2021
Snapchat
                                                                             Shopping
                                                                            capabilities
                                                                        Snap is ahead of
                                                                       the curve - AR and
                                                                           VR tech with
                                                                         in-app checkout
                                                                       make it the perfect
                                                                       platform to target
                                                                        a young audience

           Dior x Rimowa x Snap (2019)   Dior x Snap sneakers (2020)
                                                                                             9
Social Commerce Playbook 2021
Snapchat

Usage 101                                                ●   Ads: Made-for-commerce ad formats that
 ●   280 million daily active users in Q1 2021, an           include a swipe up for purchase
     increase of 51 million, or 22%, year-over-year
 ●   Snapchat reaches 90% of all 13-24 year-olds and     Coming Soon
     75% of all 13-34 year-olds in the U.S.              ●   Out-of-the-box AR and VR integration,
                                                             making the AR/VR technology more
Key shopping features                                        accessible for creative teams who might not
 ●   Snap Pixel: allows you to track customer events         have experience developing these campaigns
     across devices; so when a user sees your ad on
     Snapchat, and makes a purchase on desktop, the
     Snap Pixel tracks that event and allows you to
     attribute your ad to their actions
 ●   Snapcodes: QR scanning that connects users to                                             Snapchatters are
     exclusive content inside the app                                                           an unbelievable
 ●   AR / VR: capabilities with direct shopping linked                                          60% more likely
     are a unique feature to Snapchat. Think “try-ons”                                         to make impulse
     and experiential marketing from home                                                      purchases based
                                                                                               on products they
                                                                                More info ➔
                                                                                                see on the app

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Twitch

         Twitch reaches
           50% of the
         millennial males
           in America.
             (source)

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Twitch

Usage 101                                                  What to look forward to
 ●   9.5 million active streamers in February 2021          ●   Streamed ecommerce as entertainment:
 ●   Users are young men, under 35. Usage is split 65%          Already popular in China, this trend is moving
     male, 35% female, with 73% under 35 and 41%                west through partnerships like TikTok/Shopify
     between 16-24. (GWI) Twitch has market share of            and Amazon Live/Twitch. Partnering with
     67% content hours watched, and 90% of content              streaming influencers for ecommerce is the
     streamed                                                   future.
                                                            ●   Sports partnerships on Twitch are also
Key shopping features                                           something to watch
 ●   Merch panel extensions allow integration with
     partners like Teespring and Amazon Blacksmith,
                                                                                                 Shopping
     as well as Instagram. Setup is very easy to use                                            capabilities:
 ●   Custom merch alerts can be set up to allow                                                  Currently
     buyers to send a personalized message visible to                                       creator-dependent
     everyone watching the stream after checkout.                                         but that will change as
     Merch alerts are a case study in how social proof                                     streamed ecommerce
     can drive sales                                                                       picks up in the west.
 ●   Merch commands allow streamers to request a                                          Any brands looking to
     direct link to your product through the Twitch chat                                  break into the gaming
                                                                                                                    More info ➔
     using a chatbot.                                                                     community should not
                                                                                              sleep on Twitch

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Pinterest
                               47% of social
                              media users saw
                              Pinterest as the
                                platform for
                              discovering and
                               shopping for
                                  products

                50% of
            Pinterest users
             have made a
            purchase after
               seeing a
             promoted pin

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Shopping capabilities:
Pinterest                                                                                                     Unique and convenient
                                                                                                                for lifestyle brands
                                                                                                                 with easy-to-use
                                                                                                                 ecommerce tools,
Usage 101                                               ●   Merchant solutions: allow you to                  Pinterest’s “catalogue”
 ●   Monthly active users grew 30% year over year to        tag lifestyle content with shoppable              format resonates with
     478 million in Q1 2021                                 products to help users get dynamic                   shoppers and its
 ●   Pinners engaging with shopping surfaces grew           recommendations (more info)                       growth in 2020 backs
     over 200% in the 12 months ending March 31,        ●   Pincodes: QR codes that allow IRL                          that up
     2021                                                   products to be scanned and pulled up on the
                                                            app
Key shopping features                                   ●   Shopify integration: seamless product
                                                            crossover to make the UX as easy as possible
 ●   Shoppable pins: appear in feed and through the                                                                 More info ➔
                                                            for brands to use
     brand account as a store
                                                        ●   What to look forward to
 ●   Catalogues: turn all of your products into
                                                              ○ AR integration beyond beauty
     shoppable pins that can appear on a shoppable
                                                                   products. Pinterest’s Q4 sales call
     page
                                                                   mentioned non-disruptive ads as a
 ●   Verified Merchant Program: gives brands a
                                                                   focus for 2021, so expect more
     badge that shows customers you’ve been vetted,
                                                                   investment in shoppable pins in the feed
     and enables your “shop” tab in-app (more info)

                                                       Limitations
                                                        ●   Alcohol brands are limited in shopping
                                                            capabilities

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YouTube

          70% of people
           claim they’ve
             bought a
           product from
           seeing it in a
          YouTube video

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YouTube

Usage 101                                                 What to look forward to
 ●   74% of adults in the U.S. use YouTube- That’s more    ●   Creators adding products to videos,
     than Facebook (which reaches 68% of American              allowing viewers to click through to learn
     adults). And it’s almost twice as much as the next        more or buy
     runner-up, Instagram (40%) (source)                   ●   Automated product detection, giving
 ●   77% of 15–35 year-olds in the U.S. use YouTube            users the ability to learn more about
     (source)                                                  untagged products in videos

Key shopping features                                                                                         More info ➔
 ●   Shoppable video ads (Direct Response):                                                  Shopping
      ○ Brands can add product images under an ad                                           capabilities:
          to drive traffic to these pages                                                  With such high
      ○ Brands can tag products in ads
                                                                                          platform usage,
      ○ Users can shop products after or during a
          video without leaving the site
                                                                                        YouTube viewership
 ●   Catalogue shopping via ads:                                                         makes investing in
      ○ Brands will first need to sync their Google                                        ads worthwhile,
          Merchant Center feed with their video ads                                         especially as
                                                                                       streamed ecommerce
                                                                                        grows in popularity

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TikTok

                                                                                              “TikTok and Douyin’s
                                                                                           in-app purchases for April
                                                                                             2020 showed a tenfold
                                                                                             increase to $78 million,
                                                                                            propelling them ahead of
                                                                                            more established names
                                                                                            like YouTube, Tinder and
                                                                                           Netflix, which rely more on
                                                                                             existing subscriptions.”
                                                                                                   (Bloomberg)

                                                                       Clicking ‘Buy Now’
                            After the first                             redirects users to the
                            video loop, a                              Taobao product
                            bigger product
                            banner appears   The link takes users to
                                             a product introduction
                                             within Douyin
     An e-commerce link can be
     included in Douyin videos                                                                                          17
TikTok

Usage 101                                                What to look forward to:
 ●   800 million+ active users globally                   ●   Popular creators can share links to earn a
 ●   24% aged 25-34 and 41% aged 16-24                        commission
 ●   The main revenue stream for Douyin, the Chinese      ●   Brand catalogues
     version of TikTok, is via in-app commerce. Expect    ●   Livestreamed shopping experiences
     this in the future of TikTok worldwide

Key shopping features
 ●   Creator tools: direct link to shop in bio
 ●   Shopify partnership:
                                                                                                           More info ➔
      ○ In-dashboard options on Shopify to run                                         Shopping
          campaigns on TikTok, including targeting                                    capabilities:
          and performance
                                                                                  In the west, limited
      ○ Easy to install and use the TikTok pixel to
                                                                                    capabilities but
          track conversions on Shopify
      ○ Eligible merchants can claim a $300 ad                                     watch this space:
          credit for their first TikTok campaign                                     expect to see a
                                                                                     boom in social
                                                                                     ecommerce on
                                                                                         TikTok

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