The Impact of Influencers and Social Media on Marketing

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Over the past few years, influencer marketing and social commerce have been garnering attraction with the rise of social media. Since the beginning of 2020, the COVID-19 pandemic has been keeping people all over the world stuck at home, which has caused people to up their screen time by generous amounts. Brands noticed this and were quick to switch to influencer marketing and other forms of social commerce. However, over the past few years, the industry has become saturated across various apps, so what is in store for social commerce over the next few years?

The growth of influencer marketing over the past decade…

The spread of COVID-19 coupled with mass lockdowns led to people turning to their phones more than usual. E-commerce became safer and more accessible to many who were forced to stay at home. In the US, retail giant Walmart saw a massive increase in e-commerce sales by 97% and Facebook’s streaming service saw an increase in usage by 110% throughout 2020 due to the move online.

Influencers have been targeted over the past few years by brands because through influencer marketing, they can reach a specific audience through an influencer that boasts of impressive engagement statistics. Over 2020 this became more prevalent, with a shift to popular app TikTok, where you can watch and create videos up to 60 seconds long. As other apps became more saturated, such as Instagram, TikTok offered more opportunities for brands to be seen compared to other apps.

China has become a pioneer in the global social commerce market…

China has become a world leader for social commerce, and many describe the market in China as being the most innovative. It is estimated that by 2027, the global social commerce market could grow to be $604.5bn, led by the Chinese market. Chinese apps have been merged into both a creative outlet as well as a place for shopping, whereas social media in other countries is not so merged, as people prefer to keep the two separate.

Most of the most well-used apps in China all have in-app payment shopping available, for example, WeChat, which is used for payments for various items and services. Livestreaming is another major method for influencers in China to sell products to viewers and is one of the most popular ways for people to purchase goods, if not recommended to them by friends and family. Livestreaming in Western countries has become popular with platforms like Twitch, but platforms as such are yet to become the online market akin to those in China.

The future of influencer marketing…?

As influencers on social media have garnered the same, if not more attention than some A-list celebrities, it is no surprise that brands are turning to influencer marketing to bring attention to their products and services. Amanda Shelton, VP of Valassis admits, “There are certain consumers that simply cannot be reached on traditional TV anymore,” brands are looking towards social media to market themselves, particularly through video marketing.

There is clear preparation being made by certain companies to make the shift to a similar structure of e-commerce as China. Facebook already has a live streaming service where influencers can sell products to their viewers, and Instagram introduced Instagram Shopping to the app, where users can browse stores in-app, as well as pay in-app. However, it is unclear whether influencers on these apps will take to using these services in the future, as people are yet to become comfortable with the changes to these platforms.

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