Trackier Discusses the Future & Impact of Gen-Z on Social Commerce Growth in 2024

In the new-age world of social media, a successful branch has emerged as social commerce. Major brands are readily investing and redesigning their social channel campaigns to get ahead of the competition. User-interactive platforms like TikTok are transitioning into an affiliate-based model to invite more businesses into their app!

In a recent research conducted by Research & Markets, it was reported that countries like the United States and Brazil witnessed substantial boom in the social commerce industry with large sums of money invested from global businesses.

Upcoming Trends 2024 In Social Commerce Markets

Furthermore, the reports meticulously observe the social commerce growth rate stats of both countries. The US and Brazil report a whopping 18% and 25.7% increase year-over-year indicating an increase in investments and the newfound hype of this domain.

Moreover, the research highlights future investment predictions by assigning $73 billion to the US market in 2024 and $10.65 billion to the Brazil market by 2029, respectively. You may attribute the rapid increase or inclination of these platforms to Gen-Z's introduction to alternative media formats.

As per consensus, it is imperative to notice Gen-Z shopping habits – 65% prefer online purchases for shoes and clothes. Closely followed by entertainment and electronic products at 49% and 45%. Finally, 35% of Gen-Z choose online shopping for leisure products more amiable than in-store offers.

Additionally, the report also contributes to the success of social commerce with performance channels such as programmatic advertising (CAGR value 1718%), and paid search (CAGR Value 9.33%).

Factors That Influenced The Rise In Social Commerce

Gen-Z inclination toward social commerce platforms acts as a bridge between entertainment and online stores. Meanwhile, social media platforms are strengthening their social media presence via campaigns to generate higher investment and traffic into social commerce.

Meta’s Instagram enabled users to purchase products directly from other e-commerce websites like Amazon. Pinterest showcases an 11% rise in ad revenue in Q3 of 2023 due to this new development.

TikTok recognizes the importance of investing in social commerce and plans to do the same in the US market. After the successful launch of TikTok Shop in 2022, TikTok is increasingly becoming a popular social commerce platform for Gen-Zs to shop online whatever their hearts desire. As per NielsenIQ, TikTok experienced significant growth in the beauty and personal care category contributing to 85% of total sales in September 2023.

Moving ahead, platforms like TikTok have proven to be highly popular among the younger generation, hence, it is only logical and beneficial for brands to invest in robust social commerce strategy. According to stats provided by eMarketers, 53% of the US gen-z population leveraged such platforms for making their holiday purchases in 2023.

Along with this, the platforms' social commerce sales will surpass $100 billion by 2025. The growth of social commerce platforms would be attributed to 23% of US buyers in the 25-34 age category.

In Brazil, the success of social commerce platforms is witnessed due to the introduction of WhatsApp Business utilized by brands. The newly launched TikTok Music Streaming platform was extremely successful in the Brazilian market, attracting Gen-Z potential customers to the platform.

Final Thoughts

While the US and Brazil markets are thriving and growing rapidly under social commerce platforms, other industries or domains such as influencer marketing or affiliate marketing are picking up the pace. New opportunities arise for advertisers! It is essential to keep a reminder not to include social media in their affiliate marketing strategies to make the most out of social commerce and social media platforms.

To implement successful strategies, brands, and advertisers should prioritize incorporating social media into their marketing strategies recognizing it as a potent traffic channel generator. With platforms like Facebook, TikTok, Instagram, and WhatsApp evolving into vibrant marketplaces it is of utmost importance to directly communicate with a consumer to inculcate and foster brand loyalty and drive conversions.

Social commerce navigation might be complex for new users, so brands should seek partners with first-hand experience and knowledge of the market. Collaborating with professionals helps you engage your audience with compelling content and craft successful campaigns while mitigating potential pitfalls.

Apart from this, another important box to check is setting up an attribution tracking system that has an ability to offer omni-channel tracking with real-time reports. In today's complex marketing landscape, customers interact with brands across various channels – website, social media, email, and even offline interactions. Traditional tracking methods often struggle to capture this multi-touch journey, making it difficult to understand which touchpoints are driving conversions.

Omnichannel tracking bridges this gap by providing a holistic view of customer behavior across all channels.

Any social commerce initiative's success is implementing an advanced attribution tracking platform like Trackier's Attribution Tracking Platform. This technology seamlessly integrates with social media channels, providing real-time insights into conversions, customer journeys, and ROI metrics. By investing in a robust attribution tracking platform, brands can reach the full potential of social commerce, driving sustained growth and maintaining a competitive edge in the dynamic digital marketing landscape.