The future for social media and marketing is optimistic, but doubts remain
For marketers, social media could almost feel like a godsend. Consumers across all demographics have embraced Facebook, Snapchat, Twitter and a multitude of other platforms. Social media offers a unique, personalized, “friendlier” way to reach consumers––but does it actually work? Does it convert to sales? The general consensus is rosy, but not without critique.
Optimism comes into play when one considers how ubiquitous smartphones have become. More than 70 percent of women over the age of 18 have a smartphone, according to a recent report by Blackhawk Engagement Solutions. The primary use? Social media. As for dollars, more than $12 billion of the $69 billion spent in e-commerce during the 2015 holiday season was transacted via smartphones. That’s almost 60 percent more than those figures in 2014’s holiday season.
Impressive numbers, but in reality, social media’s influence whittles down to very little, says Jason Goldberg, SVP of commerce and content practice at Razorfish. A “buy” button embedded on Pinterest sites for major brands likely generates somewhere around 10 units of sales, he said. Engagement rates are similar for Snapchat and Twitter.
Point being, social media simply isn’t a huge driver when it comes to conversion––at least, not generally speaking. Some niche markets have seen success thanks to buyable pins on Pinterest, such as Madesmith, an online handmade goods marketplace, and Daily Chic, an online apparel retailer.
Part of the issue––aside from social media predominantly being a means of socializing––is that shopping on mobile typically isn’t as easy as on desktop. Consumers generally feel comfortable browsing, researching and comparing price points on mobile, but when it comes time to buy, they prefer the desktop experience.
However, that doesn’t undermine the power of social media to increase brand awareness among consumers, as well as market to them in a more personalized way. Rodney Mason, GVP of marketing at Blackhawk Engagement Solutions, predicts 2016 will be a big year for social media––that is, if brands can get on board and shift their thinking to align more closely with the mindset of the average consumer, who is firmly planted in the social media landscape.
According to a study by Blackhawk, 55 percent of consumers lean on social media to become educated on products, sales and marketplace happenings. Social media also allows consumers to have “conversations” with brands, as demonstrated by Babies “R” Us’ #BabysFirstKiss campaign, which encouraged consumers to post photos of a New Year’s kiss with their babies. This allowed users a chance to share part of their lives––a main draw of of social in the first place––while also getting the word out about Babies “R” Us.
Capitalizing on user-generated content is one way brands can continue the conversation on social media and generate content that resonates with other consumers. Another way is customer service, which also works to humanize a brand.
It seems we’re at the beginning of how social media plays with marketing, and 2016 will be a formative year.