Harnessing Social Commerce in the Final Stretch of Your Q4 Holiday Campaigns
By Gellena Lukats, Lisette Epstein and Rachael Wiebelhaus
As we enter the final sprint of Q4, it’s crucial for marketers to stay ahead of the curve when it comes to strategizing their holiday campaigns. A key strategy that can provide a competitive edge is leveraging Social Commerce– a fusion of social media and e-commerce. This article covers the importance of social commerce in your holiday campaigns, offers insights on various platforms, and recommends tactical shifts for immediate implementation. There is also some significant industry news about major developments that could redefine your commerce strategy.
Understanding Social Commerce
Social commerce has revolutionized the e-commerce landscape by offering a seamless shopping experience. Unlike traditional e-commerce which requires navigating between different websites, social commerce consolidates the entire customer experience within a single platform. The entire purchase journey, from discovery to checkout, happens within the same digital space, enhancing the user experience and making the process more efficient. At Acronym, we help with industry best practices, including but not limited to:
- Increasing prospecting segments, so we can monetize on users that are hyper-qualified and have previously shown interest, with offers and specialized messaging.
- We recommend increasing the budget on peak days for your business (Cyber Monday and Black Friday) and highlighting special promos/seasonal ads during this time frame.
- Use video inventory as it creates brand loyalty and sequential message opportunities.
- Consider testing Store Locator/Other integrations to create synergy between in-store/online activity
- Use social listening for consumer feedback/brand SOV. This is a great way to get learnings/insights from customers as it is self-reported, increasing authenticity of the data. By keeping open communication/transparency, social provides an avenue to get direct product feedback and improve e-commerce features.
- Consider brand and conversion lift to look at impact of campaigns.
- Consider influencer marketing. 49% of consumers depend on influencer recommendations, and 40% have purchased after seeing influencer content. There is a wide range of micro vs. macro influencers, but there is certainly an engaged market by content type available for the taking.
Insights on Social Commerce Platforms
Facebook and Instagram are currently leading the social commerce scene. In the U.S. particularly, Facebook and Instagram yielded $65.7 million and $43 million in 2023 respectively. Facebook Shop possesses a very low barrier to entry with free shop installations and easy accessibility within your Facebook business profile (Sprout). This can be viewed as both positive and negative. On the downside, Facebook Marketplace is overly saturated with online stores featuring similar products.
The rising star TikTok Shop has gained considerable traction, primarily among Gen Z audiences.
TikTok Shop is becoming an increasingly significant social commerce platform for many e-commerce. According to Retail Dive, 45% of Gen Z relies on TikTok (and Instagram) for input before purchasing.
However, recent fraud has caused some volatility, and its longevity is still uncertain. TikTok’s in-stream product sales are the main revenue generator of the Chinese version of the app, although the app’s in-stream commerce elements are unimpressive. Instead of product sales contributing to TikTok’s increased income, the newest spending trend on the platform involves gifting/donating to creators via livestreams. To combat the lack of product sales, the U.K. and China are aiming to improve TikTok’s shopping experiences for users by incorporating fast delivery. In the U.S., reluctance to use TikTok as a retail outlet with increased scams remains an obstacle for the platform’s ecommerce goals. With a lack of trust in the platform, social commerce sales on TikTok shop may take a dive.
TikTok offers unique features like shoppable videos and the ability to shop directly from TikTok LIVE broadcasts. TikTok is a huge discovery tool rivaling Google and needs to be an important stage of discovery for the GenZ audience. However, it’s crucial to continue prioritizing Facebook Marketplace and Instagram ads given their proven success in driving sales.
The Importance of Social Commerce in Your Holiday Campaigns
As the holiday season kicks into high gear, it’s essential to leverage social commerce to its fullest potential. Social commerce platforms enable you to reach a wider audience and drive additional revenue, making them indispensable tools during this crucial sales period. By integrating social commerce strategies into your existing campaigns, you can boost sales and ensure a satisfying shopping experience for your customers. Ensure you are targeting your audience in the right markets (i.e., Pinterest for new homebuyers, Snapchat for the EMEA market, TikTok for Gen Z, and META for purchase success metrics).
Rapid Tactical Shifts for Immediate Implementation
With the clock ticking on Q4, consider these swift tactical shifts to maximize your holiday campaign success:
- If your target audience includes Gen Z, ramp up your TikTok Shop ads. The platform’s popularity among this demographic could provide a substantial boost to your campaigns for discovery.
- Regardless of your target demographic, continue to prioritize Facebook Marketplace and Instagram ads. These platforms have consistently demonstrated their ability to drive sales with the least risk.
- Monitor new developments this holiday season like the Snapchat and META partnership with Amazon that should impact this Q4.
Hot News / Recent Developments in Social Commerce
Significant developments have taken place in the world of social commerce recently. Amazon has partnered with Meta (formerly Facebook) to offer a closed-loop shopping experience where users purchase products on Amazon directly within Meta’s platforms. When a user clicks an Amazon ad on Instagram or Facebook, they are taken directly to a Shops-like experience where they can complete their purchase using their Amazon credentials, all without leaving the Meta app. This frictionless shopping experience breaks down the barriers of the walled garden, enabling major stakeholders to collaborate in the digital arena. This allows users to complete purchases directly with their Amazon Prime accounts, providing better targeting and optimization opportunities for advertisers.
Snapchat has also announced a similar partnership with Amazon, expanding the reach of social commerce even further.
For brands these partnerships offer an opportunity to better personalize messaging, provide a better customer experience, and further refine and adjust strategies.
While this is still early days, in a Beta test mode to the US market only, this is a significant development and likely the biggest advertising product announcement of the year. Stay tuned to Acronym’s updates, as we monitor the rollout of such programs. We can help you address, adjust and optimize your ecommerce programs in light of these new developments.
Conclusion
Social commerce is rapidly becoming the future of e-commerce. By embracing it in the final stretch of your Q4 campaigns, you can gain a competitive edge and maximize your holiday campaign success. Stay updated on the latest developments in social commerce and consider implementing these strategies immediately. Contact us today to stay ahead of the curve and make the most of the holiday shopping frenzy.
