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Big Tech sees social commerce driving sales growth
July 30, 2021
Led by Facebook, social media platforms from Alphabet’s YouTube to Snap Inc and Twitter are investing vigorously in shopping features to drive revenue growth, a significant topic that emerged during second-quarter results over the past week.
The organizations are vying for a piece of the so-called social business industry, which relies on clients’ capacity to find and buy products through social media applications and is expected to balloon to $50 billion from $36 billion in annual sales by 2023 in the United States according to research firm eMarketer.
The success of social business stems to some degree from product targeting on dependent on client interests, with deals creating more information that can be used for future advertising and merchandize placements.
Facebook, widely considered to be the leader in social commerce, and Google helped retailers with getting sales the last quarter, with e-commerce player Shopify saying the growth pace of products sold through the two tech organizations’ platform was “several times that” of websites run by the merchants themselves.
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