Social media is rapidly becoming the major commercial influencer. With the ability to directly connect potential customers to products and services, social media ads can be the quickest and most direct channel for companies to increase sales.
Algorithms Help Social Media Ads Reach the Right Customer
The days when people waited for someone to come to the door and sell them knives, or when they waited for a monthly catalog, are long gone. The continued disappearance of large brick-and-mortar stores has long indicated a changing marketplace.
Now, consumers are increasingly getting most of their information, including news, from social media. So too for their purchases. Intuitive algorithms make it so users no longer need to search for a product on a company’s site. Instead, specific products or services can be advertised directly to them.
Social Media Ads Can Pay Off – Here’s Why and How
By reviewing a few key statistics, we can see how clearly and effectively social media works in the marketplace.
Users Are Spending
Though 47% of social media users admit purchasing something they have seen on social media once a month, the key word here is admit. Typically, people tend to admit to less than they actually do, and the sales figures speak to this fact. And with nearly half of users reporting monthly spending, the existing market for social media purchases continues to be huge.
With social media users spending 1.6 billion dollars per year, it’s clear that the advertising is not only working, but is incredibly effective. With new users joining each day, the customer base – and accompanying sales – will only continue to grow.
Because the bulk of social media advertising is so well-targeted to a specific user, sales are getting smarter. Though 24% of users report “succumbing” to impulse buying, and though 83% of those people report “regretting” that impulse, other factors should be considered.
The world of social media moves quickly. It is, by nature, impulsive. But the rhythms of impulse drive people to use social media in the first place. Only 1 in 7 people report buying something more expensive than planned because of social media. That means people think they are spending wisely. As algorithms improve to target ads to users more accurately, the market will become even smarter.
On social media sites, companies have the ability to advertise sales or special deals. When we walk into a store, we tend to buy just as impulsively. Social media advertisements can steer users to deals that they would most likely search for anyway, making the reality of a sale, impulse or not, higher. It’s up to the company to channel customer impulses to make more effective sales.
A Major Opportunity
For companies that aren’t fully convinced by the power of social media advertising, the numbers should speak for themselves. Regardless of how consumers feel about their purchases, the fact that they are buying what they see on social media is no longer a trend. It’s a reality.
44% of users say that social media does not influence them. However, social media platforms have long been woven into the fabric of daily life. Checking their phones, scrolling through posts and advertisements is habitual now. Simply, social media is increasingly where life happens. Tapping into this potential can mean the difference in a company’s longevity.
For a consumer, clicking on a product is as simple as clicking “like” on social media. But consumers are less likely to search out the products and services they want. Instead, they expect the offers to come directly to them.
Adapt, Evolve and Grow Sales with Social Media Ads
Companies looking to allocate resources for social media ads should understand the benefits of this. The numbers show that the money exists, and people are spending it. If a business does not take advantage of this major market, they risk failing to adapt, and that means a diminished ability to grow their sales.
As we all know, failure to adapt usually results in extinction, so keep your business evolving by leveraging social media ads!
As a consumer yourself, have you analyzed your own buying behavior? Get social and share your thoughts and questions in the comments!