Media platforms

How Social Media Platforms Lead to Selling Everyday Items

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YouTube is perhaps the best positioned platform, given that it is owned by Google, whose search advertising is still considered one of the best ways to reach a consumer while they are actively searching for products. .

Over the past five months, YouTube has emerged as the most effective advertising channel for driving sales conversions, overtaking Facebook as a number one platform, according to Rachel Tipograph, CEO and founder of MikMak, a market measurement platform. e-commerce. MikMak has worked with consumer product brands like Hershey’s, Colgate, and Unilever to analyze the impact of digital marketing and e-commerce.

Conversions are measured when a marketing campaign leads directly to a sale or other action. “You have to think about the level of development of the advertising platform, because with commerce, you specifically need the ability to target niches as well as retarget to drive sales,” Tipograph explains.

With advancements like digital storefronts and more targeting capabilities coming for apps like TikTok and Snapchat, they’re only going to rise in the minds of marketers.

Unlikely TikTok Star

“The place where you really live trading organically right now is TikTok,” says Tipograph. “The power of influence there is unlike anything I’ve seen in my entire career.”

Hidden Valley Ranch Dressing might be an unlikely star of TikTok, but if someone searches the app for “#ranch,” roughly 1.1 billion videos appear. Some of these videos deal more literally with life on a “ranch” in the country, but many are devoted to creamy sauce lovers as well.

“The ranch is absolutely a trend,” says Deb Crandall, Studio Manager at The Clorox Co. “There is tons of great content on TikTok, you can get lost for hours on the ranch wire alone. I would say. how surprising it is, but in fact, I can’t say it anymore.

The Clorox Co. has had commercial success during the pandemic, with consumers needing its cleaning products and food products during times of lockdown. But with social media activity, Hidden Valley is building new sales relationships. This year, he started paying to promote his product store online through advertising, bringing people from social media to the products, which is a rare direct link for the consumer for a brand that typically sells on. the sites of other retailers like Walmart and Kroger.

“We believe that tapping into that passion, which is one of the main reasons we even have the Ranch Shop, is a great way to grow our brand,” said Crandall. “So that strengthens our fairness with consumers, and we’ve seen tremendous growth for this brand and this company over the past year. “

One way Hidden Valley has seen the direct impact of social media is that there are no longer any limited edition personalized ranch dressing bottles. The offering was promoted in conjunction with mid-level TikTok stars, a modest ad budget, and ads on TikTok and Twitter. Over the holiday of 2020, Hidden Valley sold 4,000 personalized bottles and when they brought back the promotion for Valentine’s Day, it sold 2,000 bottles in four days.

“In the beginning, we focused on getting the media coverage we deserved,” Crandall says. “Now that we’ve seen what just giving a little paid support can do, that’s something we’re going to build on more. “

Social commerce is expected to reach $ 36.09 billion in the United States in 2021, up 35%, according to a February report from eMarketer. In 2020, social commerce grew by 38%, almost twice as fast as eMarketer initially predicted. The research firm attributed the surge in digital retail sales to Instagram, TikTok, Pinterest and Snapchat.

Off-site sales

The reality, however, is that despite the desire to integrate purchasing directly on these platforms, most sales still take place off-site. For a brand like Hidden Valley, sales still mostly take place on retail sites like Kroger, Walmart, and Amazon.

“We’re less interested in building our own direct-to-consumer site right now, so we’ll be advertising our products a lot, but we’re building relationships with our retail partners,” Crandall explains.

Social media and live video in apps have become marketing tools for popular buyers. Walmart, for example, has organized video sales events in partnership with TikTok. Sarah Marzano, senior senior analyst at Gartner, says these activities became popular during the pandemic when shopping in stores was out of the question. But we don’t know if this will last.

“People kind of lacked that notion of product discovery and they were inspired by some digital shopping and live streaming, to bring that fun element of shopping to people when they were stuck at home,” explains Marzano. “It remains to be seen how this surge of interest in live broadcasting [shopping] sets in once people start returning to stores.

There’s another reason social apps want to get closer to retailers, however: Apple has updated its iPhone software with privacy notices that give consumers the ability to block apps from tracking a person’s internet activity. website to another. One of the main impacts of this change is that it’s harder to measure when an ad on one app leads to a sale on another.

Without the ability to follow this digital trail, social media companies want consumers to move from product discovery to purchase right on their platforms. This would allow platforms to prove their worth and also retain customer data.

Publishers like Condé Nast see the power of digital retail and shape their content strategies accordingly. In May, Condé launched a new category of “purchasable” shows like “7 jours 7 looks”, “Secrets de beauté” and “Grooming Gods”, through publications like Vogue and GQ. The shows will allow viewers to purchase products featured through links on Conde’s own sites and social platforms, including YouTube.

“Look at brands like Hermés, which have seen tremendous success and growth in e-commerce during this period,” says Pam Drucker Mann, Managing Director of Revenue and President of US Revenue at Condé Nast. “E-commerce distribution has made a lot of progress for the luxury market, so what does this create in the content? I think this creates a huge opportunity.

Marzano names Kate Spade, the designer brand owned by Tapestry, as one of the retailers moving towards the digital commerce economy.

The company saw 700,000 new customers through e-commerce channels and triple-digit growth in digital sales in the first quarter of the year.

“They were able to see a direct impact and momentum from these videos on TikTok on their product sales,” said Marzano.

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