Study finds Social Has the Power to Condense the Purchase Journey to One Click and Enhance the Online Shopping Experience
New York, NY – April 26, 2023 — There has never been a better time for brands to sell on social media. People are already shopping on social media, and the data shows that they will continue to do so. New research by Media Trials, a research arm of IPG Mediabrands investment and intelligence company, MAGNA, Reprise Commerce, also part of IPG Mediabrands, and Snap, set out to establish what consumers want today while shopping online and explore new ways of guiding the purchase journey.
What Does the Future of Social Commerce Entail? found consumers wanting simpler paths to purchase, with GenZ respondents agreeing that the traditional shopping journey is almost twice as complicated as social shopping, which takes one click to go from post to product page. Once there, brands that experiment with social-commerce tech, like augmented reality (AR) lenses, discovery tabs and virtual shopping groups, can enhance the consumer experience.
The study found that social plays a significant role in the purchase journey and advertisers should aim to invest in tools that connect friends and family on social media while online shopping. And further, advertisers should test augmented reality (AR) capabilities alongside video ads on social media platforms to better understand how AR can help fuel consumers’ purchase decisions. The research was conducted in four countries including the United States, United Kingdom, Germany and Saudi Arabia.
“What advertisers need to know is that online shopping is already deeply rooted in social media. Most social media users are already using it as a way to discovery new products and close to half have made purchases directly on social media platforms,” said Kara Manatt, EVP, Intelligence Solutions, MAGNA. “Advertisers should take advantage of social media tools to reach consumers where they are and consider leveraging social commerce technology like discovery tabs and virtual shopping groups.”
Ninety-two percent of people said they would be willing to purchase directly from brands on social-media platforms instead of an online marketplace if offered good deals and discounts, user-friendly apps, real-time customer service, instant shopping capabilities, recommendations for products through ads and timely updates on sales and events. In Saudi Arabia, 97% of consumers discovered a product on social media and 80% purchased the product.
Additional key findings of What Does the Future of Social Commerce Entail? include:
- Openness to making the purchase on social media platforms is universal, young people are especially willing: Younger generations are leading the charge in discovering products and making a purchase on social media platforms. Seventy two percent of people most likely to make a purchase via a social shopping journey are GenZ, and 69% are Millennials.
- Investing in social shopping features simplifies product discovery: As far as social shopping features go, 67% of people would use Discover tabs to shop again in the future, followed by Shopping Tabs (72%) and Shoppable Buttons (70%).
- While influencers serve as a resource, nothing beats the persuasive power of people you know in real life: 78% of people said they would look to friends/family on social media for recommendations vs 59% known influencers and celebrities, while 77% look for inspiration on social media from their friends/family, compared to 62% of known influencers and celebrities.
- Everyone agrees social shopping smooths the purchase journey: 79% of people feel the social shopping journey is quick, while 75% find it to be convenient and 65% find it to be seamless.
- AR will instill confidence in purchase decisions: 69% of people feel more confident about their online purchases, using virtual experiences, which can lead to fewer returns and benefit sustainability and brand profitability. In fact, 64% of respondents claimed they would be less likely to return a product they’d experienced virtually before purchasing.
“As consumers become increasingly open to AR features while social-shopping, brands would be wise to introduce features like try-on lenses for clothing and in-room product placement options to test home-décor items,” said Glen Conybeare, Global President, Reprise Commerce. “Study participants said they were not only open to using AR to purchase clothing and furniture, at 87% and 85% respectively, but also for experience driven purchases like travel and food at 80% and 76%.”
“More than 250 million Snapchatters have engaged with AR shopping Lenses on Snapchat, and come to our platform to receive trusted recommendations from their real friends and the creators they love,” said David Roter, VP, Global Agency Partnerships, Snap Inc. “There’s a huge opportunity for brands and agencies to make the shopping experience better by using the power of AR technology to create engaging new experiences that shoppers can share with their close network of friends and family.”
The methodology of the study included focus groups in the U.S. and administering online surveys to nationally representative panels of consumers in the U.S., U.K., Saudi Arabia and Germany, numbering 2,000 per market.
The full study can be found here.
About MAGNA:
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.
We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://www-wp-stage.magnaglobal.com/ and follow us on LinkedIn.
About Reprise Commerce
Reprise Commerce is the dedicated Commerce business unit of Reprise. We provide specialist commerce consultancy to brands as well as activating performance media campaigns, creating commerce content, and reducing friction to the buying process on Direct Consumer, eRetailers and Marketplaces. With 350 commerce experts amongst our team of 2500 performance marketing specialists, our team is connected to our clients and customers. To learn more about Reprise Commerce, visit our website and follow us on LinkedIn.
About Snap:
Snap is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. The Company’s three core products are Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world; Lens Studio, an augmented reality platform that powers AR across Snapchat and other services; and its AR glasses, Spectacles. For more information, visit snap.com.
Media Contacts:
MAGNA/Mediabrands
Elaine Underwood
Content Director, Global Corp. Communications
201-306-6062
[email protected]
Snap Communications:
[email protected]
