Earn Your Share of the Social Media Spending Spree
Social media has moved well beyond a place to form and grow digital friendships. For many, it also serves as a community source for insights on products and services. Users trust peer recommendations and follow direct paths from retail links to e-commerce purchases in a matter of moments.
The following is a look at recent data pointing to massive spending growth on sponsored social media advertising referrals, and suggestions on how your retail business can get in on the action.
Background on Social Media Referrals
According to the Word of Mouth Marketing Association, 2.4 billion brand conversations occur daily in the U.S. Many of these take place on social media platforms.
Seventy-one percent of consumers reported that they are more likely to purchase something after a social media referral. Fifty-eight percent of consumers share positive brand experiences with followers and 55 percent share product purchases.
Since its inception, Pinterest has been one of the best social channel opportunities for retailers. This point is especially true for companies that sell visually-appealing products like clothes, decor, furnishings and DIY. Amazingly, 59 percent of Pinterest users have bought at least one item seen on the site.
A recent study of over 700 million social media-referred shopping sessions from Colombia Business School and the University of Pittsburgh revealed that Pinterest referrals are the most profitable for retailers. On average, consumers referred from Pinterest spend $170 per transaction.
In addition to regular posting and pinning on boards to illustrate your brands, Pinterest offers Buyable Pins, which allow you to control spending and visibility with social media advertising.
Facebook achieved the second-highest per-transaction spending in the study at $95. The multiple features of Facebook, including messages posts, images, videos, and live streaming, contribute to engagement opportunities for retailers. Beyond organic posting, you can execute sponsored posts in user timelines to connect with targeted prospects. Thirty-three percent of Facebook users have purchased items viewed on their timeline.
Brand influencers are a huge opportunity to leverage on Facebook. Seeing friends traveling, having fun or utilizing desirable brands motivates users to take purchase action for themselves. Getting fans to your business page matters as well; 85 percent of brand fans have made recommendations, according to Syncapse.
Though lower than Pinterest and Facebook, spending from Twitter referrals is still a hefty $71 per transaction. A key benefit of targeting users on Twitter is its gender-balanced, age-diverse and somewhat professional user base.
Retailers looking to target a more affluent user base, or at least have access to a distinct marketplace, may find Twitter the most advantageous opportunity.
To achieve optimum success on social referral spending, balance your organic message strategies with social media advertising. The feelings people get from the messages, images, and videos shared by brands and friends is what drives their purchase behavior and spending levels. Leverage emotional appeals in your communication.
For expert help on taking advantage of the social media spending spree, contact our Director of New Business Development, Amanda Sparks!