Social Media to Give the Gift of Strong ROI this Holiday Season
The 2023 holiday retail season is right around the corner, and the expected impact of social media on ROI is bigger than ever before. A striking 27% year-over-year surge in traffic referrals from social media platforms during the first quarter of 2023 serves as a potent reminder of its influence, even in an era of complex consumer shopping paths spanning numerous channels. And this impact resonates beyond the digital realm, significantly shaping in-store behaviors. Surprisingly, over 50% of consumers actively sought out products they discovered on their social feeds in physical stores.
Traditional influencer marketing, once the dominant advertising force in social media, is now overshadowed by the direct potency of products advertised in users’ social media feeds. This shift underscores the potential of social media advertising. Nearly 50% of shoppers are now inclined to visit brand or retailer websites after seeing a social media ad, surpassing the 39% influenced by promotional emails.
Instagram Leads the Way
Instagram took social shopping to new heights in 2022. It is now poised to do even more during this year’s holiday season. Features like shopping tabs and “save later” buttons, makes Instagram’s in-app purchases seamless. And for consumers aged 18 to 54, it stands as the primary channel for product discovery. In fact, over 20% of Gen Z, Millennial, and Gen X social media users have directly made purchases within social media apps in the past three months. Expect this to increase, driving a strong ROI for retailers who double down on the platform.
Social media marketers are already capitalizing on this trend, with nearly half (47%) reporting an increase in in-app sales.
Some Consumers Have Reservations
Despite this potential, there are still some consumer reservations with on-platform purchasing. Only 41% of social media users are comfortable with in-platform transactions. And only 37% trust these platforms with their credit card information. Their concerns mostly revolve around brand legitimacy, refund convenience, and product quality.
The 2023 holiday retail season will be fueled by social media in a whole new way. Instagram, as the star player, promises a dynamic consumer journey, and can enrich your retail strategy with a captivating shopping experience, trust-building, and undeniable ROI.
If you want to leverage paid social media to boost your sales this holiday, don’t hesitate to reach out.