Social advertising is an important channel for most retailers. Today’s consumers are online, mobile, and social. And they expect their favorite brands to be so as well. Retailers who are succeeding in social marketing are using these platforms to build exceptional customer experiences, provide customer service, and engage with younger generations such as Millennials and Gen Z. Consumers are also making purchases on social channels. In recent research by Deloitte, 14% of shoppers are now making purchases through social media.
As social advertising matures and in order to take advantage of new ecommerce opportunities from Covid, retailers are ramping up their spend in social. According to a report by Insights and Smartly.io, 62% of retail organizations spend between 31% and 50% of their overall marketing budget on social media advertising. These results represent an increase from last year’s study, which found that 53% of organizations spend between 26% and 50% of their overall marketing budgets on social media advertising.
Facebook Outperforms Other Platforms
Despite the increasing popularity of other channels, Facebook still reigns supreme. 93% of retailers buy social media ads on the platform and 36% say they spend most of their social media advertising dollars on Facebook.
Although while most may be advertising on Facebook, almost half of respondents (42%) say they see the best return on ad spend (ROAS) from Instagram. That’s compared to just 21% in 2019.
While 76% of respondents say they will increase their ad spending on Facebook, only 38% of organizations plan to increase spending on Instagram and a surprising 24% plan to decrease spending, despite it being the most stated platform for ROAS.
Personalization and Social Media
Retailers understand the power of personalization and are making strides to optimize ads with personalized content. Only 15% of organizations say they struggle with personalization and most organizations plan to optimize ad delivery with first- or third party data (56%) and integrate personalization into their campaign concepts (55%)
Social Media for Purchase Inspiration
In a survey by PWC, 37% of online shoppers say they use social media for “purchase inspiration.”
This is higher than any other form of online media, including retailer websites, price comparison websites, and multi-brand websites.
According to an article by Marketing Charts, these findings are backed up by research from Engagement Labs, which has found thatTweet