Social shopping is growing but not as quickly in Western markets as it has in China, where Douyin saw $375 billion in sales in 2023. TikTok, in comparison, generated $4 billion in in-app spending last year. Facebook leads in driving social shopping behavior, but Snapchat and Reddit have higher purchase rates among their engaged users. Short-form videos are currently the most influential content type in social commerce, though security and trust issues continue to pose challenges for social shopping adoption.

It's almost impossible to scroll through your For You Page without coming across a live video where you're being directly sold to — akin to the '90s shopping channel QVC. These streams give users community interaction, advising each other in the comments, as well as a celebration moment when someone makes a purchase in front of hundreds of other users. Many businesses in China, the UK, and the US have turned to this sales format via TikTok Shop, as social media users are increasingly willing to make purchases directly through the app.

The "Deals for You Days" event on TikTok Shop led to a historic spending high of $52 per U.S. shopper, breaking a trend of declines and capturing 37% of Chinese e-commerce sales in the U.S. This performance brought TikTok Shop closer to competitors Shein and Temu, despite lower overall spending. The success, fueled by impulse purchases, highlighted TikTok's potential in e-commerce.

Over 110 million Americans (42% of internet users) were social buyers this year. The majority of brands believe that social selling has been effective for their businesses. Social media platforms are prioritizing seamless in-app shopping experiences. Brands have been seeing the highest ROI from IG and FB. Short-form product demos and teasers have been key to driving sales for brands.

Chinese-owned platforms Shein and Temu have rapidly grown to challenge Amazon's dominance in the U.S. ecommerce market driven by aggressive marketing, innovative supply chain management, and a focus on under-served demographics, despite facing logistical pressures and ethical scrutiny.

Shopping hauls are resurging, driven by algorithmic recommendations and Buy Now, Pay Later programs. YouTube and TikTok enabling direct purchases from videos further fuels this trend. This ease of shopping has led to a 12-month high in average items per transaction, with nearly 11 products per order, exceeding last December's holiday sales.

Snapchat users often start their shopping journey on social channels. 88% of Snapchatters love to shop, 85% discover new products through social ads, and 87% frequently recommend products to friends and family. Snapchatters also significantly influence their networks, with 72% seeking recommendations before purchases. Studies show Snapchatters' purchases are a reflection of their personal style, with 90% agreeing their shopping choices express their identity.

A recent report highlights the significant role Snapchat plays in influencing consumer purchasing decisions, particularly through influencer marketing. According to a survey conducted by eMarketer, a remarkable 85.6% of Snapchat users reported making a purchase after seeing a product showcased by an influencer within the app. This statistic positions Snapchat as the leading platform for driving shopping activity compared to other major social media platforms like TikTok, X (formerly Twitter), and Instagram, with YouTube surprisingly trailing behind despite its well-known creators. The report emphasizes that Snapchat's unique environment fosters a sense of intimacy and trust, which likely contributes to its effectiveness in connecting influencers with consumers. Notably, the survey found that Gen Z shoppers, aged 15 to 26, are particularly responsive to influencer content, with 82% indicating they have made purchases based on such recommendations. In contrast, only 18.8% of baby boomers reported similar behavior, although a noteworthy 40.8% of Gen X shoppers also engaged in creator-driven purchases. Facebook, on the other hand, showed the lowest rate of influencer-driven shopping, which aligns with the platform's challenges in facilitating creator connections and promoting relevant trends. The findings underscore Snapchat's importance as a purchase driver and suggest that brands looking to enhance their marketing strategies should consider collaborating with relevant influencers on the platform, especially to reach younger audiences who are increasingly open to online shopping. Overall, the data reinforces the idea that Snapchat is a powerful tool for brands aiming to leverage influencer marketing to boost sales and engage with consumers effectively.

TikTok users are more likely to make self-gifting purchases compared to other platforms, with 87% indulging in gifts for themselves during the season. They also make 80% more travel-related purchases. The platform's diverse community celebrates various cultural traditions, contributing to a 1.24X higher spend across categories.

One-third of U.S. consumers decreased their spending in Q2, while a quarter increased it. Gen Z consumers increased their spending the most, both overall and online, while Baby Boomers were the least likely to change their spending. Compared to Q1, over 20% more consumers in Q2 said they were likely to purchase products directly from social media platforms like Facebook and TikTok.

YouTube has enhanced its partnership with Shopify in response to TikTok's rapid growth in U.S. e-commerce, enabling creators to access a much wider range of brands through its Shopping affiliate program. This expansion is part of YouTube's broader strategy to increase revenue from e-commerce as digital advertising slows, with new tools like a Chrome extension making it easier for creators to incorporate products into their content. By boosting the number of brands available and streamlining the shopping experience, YouTube aims to solidify its position against competitors like TikTok Shop.

73% of Gen Z consumers purchase based on creator recommendations, significantly higher than other demographics. LTK shoppers demonstrate a 38% net positive increase in buying power for the holiday season. Their top priorities are availability, brand, and quality, unlike the general population which focuses on price. Instagram, Facebook, and YouTube are the main platforms influencing these shoppers. Early holiday shopping is growing, with 70% starting by September. Brands should implement an "always-on" strategy. Key gifting categories for Gen Z include beauty, entertainment, and fashion.

TikTok's collaboration with Amazon brings in-app shopping to users' feeds, enabling them to buy products directly through the app. For advertisers, this means a new, frictionless way to convert TikTok's highly engaged audience into customers. As Amazon strengthens its foothold in social media, this partnership could set a new standard in social commerce.

55% of Gen Z shoppers have made online purchases while browsing social media in the past 6 months, compared to 38% of shoppers overall. 44% of Gen Z start their shopping with online searches, while 42% begin in stores, and 40% use mobile apps or websites. About half of the respondents of the survey expressed a willingness to buy more clothes if virtual try-on tools were available.

X is losing its status as a key news source, with TikTok surpassing it in several regions. There has been a decline in news consumption on Facebook and X despite efforts by Elon Musk to position X as a leading news platform. TikTok's popularity for news is growing. YouTube and Facebook remain the most used platforms for news, while X struggles to gain credibility. A link to the full 168-page report is provided in the article.

Rising inflation and economic uncertainty in 2024 have transformed shopping behaviors, with consumers embracing "fun-flation" and buy-it-for-life communities. TikTok's "What's Next" trend report explores these new shopping trends, emphasizing the significance of emotional connections, community, and transparent brand relationships.

Social media marketing has evolved to prioritize entertainment over interaction. This was heavily influenced by TikTok's emphasis on public posting and content consumption time. Today's social media algorithms also prioritize entertaining content over divisive or argumentative posts. This shift has led to a decline in engagement and interaction on platforms like FB and IG, despite increased time spent on AI-commended content.

Amazon is planning to launch a new section on its site dedicated to low-priced fashion and lifestyle items. The new storefront will allow Chinese sellers to ship directly to US consumers, with items arriving within nine to 11 days. It is an aggressive attempt to fend off competition from Temu and Shein, who have expanded their presence in the US in recent years. Amazon will start accepting products for the storefront this fall. The company has yet to announce when it intends to debut the storefront.

Instagram has experienced a resurgence in beauty content, with a 68% YoY increase in video views during the first half of 2024. Despite TikTok's growth in activated influencers, it has not seen corresponding increases in engagement, contrasting with past trends. Brands are increasingly relying on sponsored content, but engagement growth for these posts has been modest compared to the rise in mentions, suggesting audience fatigue.

Mobile will account for over half of holiday e-commerce sales due to Gen Z's shopping growth, mobile-native apps, and rising buy-now pay-later (BNPL) options. Overall holiday e-commerce is expected to grow only 5% this year. With a shorter Christmas shopping season of 29 days, email volume will increase to counter higher digital ad costs. Social commerce will experience growth from new platforms and increased Gen Z usage. BNPL is projected to grow 9% YoY, driven by retailers promoting in-store offers.

According to a new study by Material and TikTok, TikTok plays an increasingly powerful role in the product discovery process for consumers. 61% of the app's users discover new brands and products on the platform, which is 1.5X more than other platforms' users. 29% of users use TikTok specifically to search for a brand or retail account on the platform.

Quick point-and-shoot product placements and fast fashion hauls are becoming outdated in the influencer industry. This post predicts upcoming shifts, including increased investment in influencer marketing by 75% of B2B marketers. They will likely engage key leaders and experts in niche industries and host campaigns on platforms like LinkedIn. Brands will use their employees as brand ambassadors to better connect with consumers. As social media usage declines, influencers will gather loyal fans into more intimate digital spaces, like brand forums or broadcast channels.

TikTok is reportedly developing a feature that would allow brands to use AI-generated influencers to promote products via videos and live-streams. The tool has been successfully tested and implemented in the Chinese version of TikTok, Douyin, which has seen AI hosts generate substantial sales for brands.

The social media marketing landscape is evolving as platforms adjust their algorithms. Meta has shifted away from news content, impacting publishers' strategies. Reddit's organic referral traffic has surged sevenfold due to its partnership with Google. LinkedIn is seeing higher engagement through newsletters, while Meta and X penalize link posts, leading publishers to explore new opportunities. Ad budgets are shifting from X to Snapchat and Reddit, with notable increases in spending from small and medium-sized businesses.

The rise of #dupe culture, driven by Gen Z's acceptance and promotion of cheaper alternatives to luxury products, is reshaping consumer behavior. Social media experts suggest that high-end brands should not fight this trend but rather use it to engage with a wider audience and strengthen their brand image. Brands like Lululemon and Olaplex have already seen success by incorporating dupe culture into their marketing efforts.

54% of US adults obtain news from social media. Facebook and YouTube are the top sites for news consumption, each used regularly by about one-third of adults Instagram and TikTok follow at 20% and 17% respectively. Social media site-specific trends show that 59% of X and 57% of Truth Social users regularly get news from those platforms, compared to just 14% of LinkedIn users. News consumption on TikTok has surged to 52%, up from 22% in 2020.

The fashion industry is at a pivotal moment, with luxury brands struggling, e-commerce floundering, and disruptors like Shein rising. Fast fashion's waste problem is being partly addressed by Shein's responsive manufacturing, though concerns remain about its transparency and labor conditions. Key areas to watch include AI integration in fashion, the growth of the Indian market, and the industry's efforts to address the climate crisis through waste reduction.

Traditional search engines are losing relevance, with users preferring personalized recommendations from social media and other platforms. Gen Z in particular seeks trustworthy, curated shopping experiences and is wary of AI and influencer-driven information. Reddit is considered a highly trustworthy source, often on par with recommendations from friends and family. The platform offers ad tools that help brands place their products in relevant subreddit streams, capitalizing on its role as a discovery tool.

Facebook is reclaiming its appeal to Gen Z by leveraging creators, similar to TikTok's early days. Only a third of teenagers used Facebook last year compared to 71% of those over 50. Initiatives include events for creators, content updates, and monetization opportunities. Some influencers are showing renewed interest, particularly micro- and nano-influencers focused on video content. The success of Facebook's approach hinges on unique, differentiated content to draw Gen Z away from Instagram, Snapchat, and TikTok.

Gen Zs are 12% more likely than the general population to use TikTok as a trusted source for hard-to-find information. TikTok's influence on purchasing behavior is significant, as 60% of regular users have made a purchase based on a recommendation. These users also have a 21% higher median cart value online. Positive sentiment towards TikTok advertising remains high, with 50% finding the ads fun and engaging. TikTok's role as a search platform is also expanding, with 36% of users using it to find information about projects or products.