In recent years, social media has become a major force for brands looking to build more authentic relationships with followers, but the added attraction is the ability to integrate social commerce to streamline the customer journey and create new revenue streams. And while the clarity of that potential remains largely hazy, apps like TikTok are betting that the door to social commerce is wide open for Gen Z.
This week, TikTok began teasing its intentions to build its own distribution center in the United States by posting several jobs on LinkedIn to help kickstart the process, according to findings released by Axios. The job posting alludes to an "international e-commerce system" that could help some sellers on the ByteDance platform deliver goods to consumers faster, likely supported by increased in-app advertising activity.
TikTok's strategy, a great move to close the circle of social commerce, speaks to the untapped potential of social commerce. Social commerce is expected to reach $1.2 trillion by 2025, three times the growth rate of e-commerce.
The platform has recently evolved to influence merchants and consumers in the lead up to the holidays. TikTok recently added three new ad formats to its portfolio , and Instagram is quickly following suit . The Meta platform's own study found that 90% of its users complete at least one intent-indicating action, and additional tools such as augmented reality filters and machine learning can make shopping fun and, above all, fun and accessible.
But becoming accessible and increasing sales requires a strategy that works for platform users. For example, when developing integrations for in-app commerce, brands may consider moving away from traditional calls to action to maintain authenticity and avoid corporate jargon that typically turns off Gen Z users.
“Social media-using Generation Z knows how to shop online,” said Zelly Vaz, general manager of organic social media at Power Digital. “They don't have to say 'click here to check', they already know the link is in the bio, or touches the product. I think the CTA will go."
While social commerce is facing some setbacks due to changing privacy requirements and a return to brick-and-mortar stores, investment in integration can pay huge dividends with the ability to keep consumers not just on one screen, but across the entire platform. .
“In-app purchases mean you never have to leave anyone else's cage,” says Lorraine Lyons, senior strategist at PSFK. “…Five or six years ago everyone was talking about shopping on social media, but nobody liked it…Now I feel like we have a better experience where shopping and social media is seamless, convenient, etc.” fun times."
Generation Z wins
Marketing to Gen Z on social platforms requires nurturing the excitement and vulnerability that young people crave. These traits are being reinforced in part by COVID-19, but even as consumers seem to have moved on from many of the fads of the pandemic, Gen Z's desire for authenticity remains strong. However, perhaps more powerful is the ability to find emotionally empty activations.
“The problem with Generation Z is that they are very shy,” Lyons said. “They are constantly growing thanks to online marketing and advertising. They know how easy it is to spot anything that doesn't seem genuine."
Vaz says that, compared to millennials, Generation Z is less confident about what they use on social media. More and more groups will use social media as a place to research the brands they are considering buying, to see who mentioned them in a post, what other customers are saying, and whether they are ticking boxes for other reasons they care about, such as on sustainable development. variety . According to the GWI Gen Z study, these are the two things Gen Z is most worried about.
“These are all factors that the public is paying attention to,” Vaz added. This company is giving back. Do you care about your clients? Can I have a long term relationship with this company, will I be more than a number?
become more confident
Leveraging influencers remains key to building trust this year: According to a GWI study, 30% of Generation Z follow at least one other influencer or expert, and the strategy is expected to spend around $5,000,000,000 . But perhaps this year's rising stars, the use of nano-influencers, or those with less than 5,000 followers, have become the fastest growing segment of influencer marketing.
Registering nano-influencers offers the advantage of greater (usually less) outreach and generally gives marketers better deals and the ability to reuse content later. Instead, consumers no longer have to deal with company jargon to find brands, but instead feel connected to content creators they interact with who can drive sales; 73% of US consumers aged 18-40 trust product reviews. people who "look like them", according to a study by the creator of the trading company Whalar .
"You're really developing a social community of people who are true fans of your brand, who have a lot of influence in their group of friends and have less authority as 'influencers,'" Vaz says.
Spreading influencers across different communities can also increase the effectiveness of trend tracking. When brands consider their social strategy, Lyons says, they need to look at how different hot topics can air depending on who they're talking to.
“[Gen Z] has legs everywhere,” he said. “Everything is in trend, not just one thing. If this is not the focus of the cottage, then this is a coastal headstock, but it applies to literally everything. "
This year, Instagram will remain at number one for influencer marketing, with marketers planning to spend $2.23 billion on the app, plus $948 million on Google's YouTube and $774.8 million on TikTok. In the future, Lyons said, platforms and brands may start exploring subscription-based offerings that will give consumers some "extras" such as behind-the-scenes content, deferred payments, or possibly higher inventory levels.
Some might explore using a text-based app like Twitch or Discord to create multiple one-on-one connections, he added. For example, in September, the UFC partnered with social media messaging app IRL ("real life") as its official group messaging platform.
Do it fast
Short videos are still the favorite of social media strategies and TikTok continues to grow as the leading social platform for this feature. Others have invested in this strategy this year, as YouTube ramped up its offer of short videos in June and Facebook ended its direct buy feature in favor of shorter video content. Instagram has also faced a recent backlash for copying TikTok's video-based algorithm.
Despite the discomfort, consumers are unlikely to abandon traditional platforms like Instagram, according to Chuck Byers, professor of marketing practice at Santa Clara University. And as social platforms change tastes, marketers also need to make sure their content stays in shape.
“After 60 seconds, people start to wonder,” Byers said. “If you really want to connect with consumers, you have to please them. Anything longer than a minute will be deleted."
The platforms that have emerged this year are also benefiting from the growing desire for fast-paced entertainment, especially BeReal. At press time, the app ranked second on the app store, ahead of TikTok, and brands like Chipotle and elf were among the first major brands to try the platform. WeAre8, a targeted social platform that encourages people to spend as little as eight minutes a day watching content, has received investments from brands such as Nike, Heineken and Budweiser.
As the platform continues to expand, Vaz expects increased attention to audio as more brands create original videos or prioritize the use of viral sounds that can provide a creative edge. For example, McDonald's increased the virality of its Sprite offering by collaborating with rapper Tisakorean on an original song on TikTok.
In the future, Generation Z will likely have some influence on the next big game on social media platforms. While marketers focus on current trends, they must pay attention to what is behind the curve.
“I see that Generation Z will be the next to break into social media to find out who they want to be,” Lyons said. "I was waiting for this.
