what business return for brands?

what business return for brands?

True storefronts, social networks have expanded their marketing function to e-commerce issues in recent years. With strong promises, but mixed results.

According to the Accenture study published in January, social commerce represents a significant economic unexpected, estimated at $ 1.200 billion worldwide in 2025, compared to $ 492 billion in 2021. Facebook stores, Instagram shopping, Tik Tok shopping or even Pinterest shopping represents the e-commerce dimension that social networks are now taking on. In this regard, the YouGov survey conducted from 5 to 6 January 2022 reveals that consumers first prefer Facebook (73%), Instagram (26%) and then Snapchat (11%) to make purchases via social networks. . However, it is currently impossible to complete a transaction directly on the social network: Once the product has been identified, the customer switches to the brand’s reseller page. According to YouGov, ads and sponsored content on social networks encourage 67% of French people to visit a brand’s website. A favorable statistic for the traffic on trading sites and potentially for their business.

Opaque tracking

In 2016, the brand of bags and accessories made from recycled and upcycled materials Rive droite Paris launched its activity at the same time as its Instagram account. Two years before the arrival of the shopping functionality on the social network, Rive droite Paris wanted to create a direct connection to consumers. “Instagram was originally primarily an exchange channel to learn about the initial feedback from customers and test our financial model,” emphasizes Aurélie Jansem, co-founder of the brand. For more than two years, Rive droite Paris has had its store on Instagram Shopping and has invested in paid acquisitions. “It’s an extra showcase that instantly offers the price range of our products,” continues Aurélie Jansem. Consumers can thus position our brand, which often inspires gift ideas and discover the complete vision of our catalog. “

But the brand struggles to determine the transactions that result from social shopping. “Between the regular iOS updates and the opacity of the attribution of the algorithms, we have no visibility on the precise tracking of social networks on our e-shop,” explains the co-founder. Hence the adoption of an omnichannel strategy and the multiplication of sales channels in retail, wholesale and in marketplaces to promote the balance of the company. Right-wing Paris is currently considering reconstructing the origins of its traffic by turning to specialist companies.

But there is no question of abandoning your Instagram store, even though this channel is located far behind direct traffic and SEO. “The desirability of our brand on social networks can not be measured, nor can the content we publish and the operations performed, justifies Aurélie Jansem. Overall, our revenue is also built up thanks to social shopping. Despite Instagram’s shortcomings make it a business simplifier and an incredible connection to our community. ”

AI to conduct discovery trading

According to data from the Meta group, Facebook Shops and Instagram Shopping combine 1.2 million stores and more than 300 million visitors visit them each year worldwide. Significant volumes reflecting new consumer trends on social networks. “We have always been a part of supporting trade for our partners, and we know that social networking is the ideal place for consumers to discover brands, there is plenty of Florence Trouche, Sales Director France at Meta. Social networking is part of an integral part of the companies’ business. ” The social shopping behemoth is in favor of a discovery trade, where the properties of the products are highlighted by the Reels image or video format on Instagram. Enough to guarantee a smooth customer experience right up until the purchase action.

“Like the recommendation on Netflix, we operate in the same way at Meta. We offer content and brands based on our recommendation tool,” explains Florence Trouche. Although beauty is one of the most represented categories on the Meta Group’s social procurement platforms, the Sales Director for France ensures that other sectors such as cars are not omitted. Meta does not provide figures for sales made through its social networks. According to Florence Trouche, brands need to continue to invest in personalized advertising to target the right customers and also improve their performance. “Of course, it’s a continuous learning process thanks to AI,” notes Florence Trouche. A process that is subject to the whims of the algorithms as reported by Rive droite Paris.

A limited business return depending on the product

For its part, the brand of pillows, duvets and bedding, Wopilo, created in 2017, has chosen a completely digital approach thanks to its only e-shop as a sales channel. “So we need to find our customers where they are, on the Internet,” explains Thomas Hervet, founder of Wopilo. The brand is very active in influencing via promotional codes, but the founder mentions the difficulties of Instagram Shopping and Facebook Shops in understanding all the characteristics of a product, such as a pillow. “On our site, the shopping basket easily exceeds 100 euros, but without reviewing the explanatory content of our e-shop, the discovery of our products on a social network turns out to be quite superficial to provoke a purchase,” notes Thomas Hervet. A conclusion in the context of the YouGov survey, which notes that 79% of French people buy for less than 50 euros via social networks, ie 10 euros less than the average basket in e-commerce in France (Fevad). Only 2% claim to spend more than 100 euros.

Social shopping therefore has limits for certain activity categories, such as Wopilos. Therefore, what is the interest of the brand in keeping its Instagram and Facebook stores? “It contributes to the security and seriousness of Wopilo”, answers Thomas Hervet. In 2022, the brand plans to move towards live shopping, which is more in line with its product catalog and less opaque than social shopping on the company’s impact.

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