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Next year, for the first time, more than half of US social network users will shop through social media.
But not all platforms are seeing the same growth.
- The number of US TikTok users will increase by 72.3% this year and reach 23.7 million.
- In contrast, Instagram will have 41.0 million users at 9.0% growth, and Facebook will have 63.5 million users at 11.9% growth.
“There has never been such a rapid growth” in the number of consumers from the amount of users of the platform as on TikTok at the moment, says our analyst Jasmine Enberg on “Behind the Numbers : Reimagining Retail” podcast. “By 2023, we expect that the number of TikTok users who are customers will be the same as the number of Facebook users who are customers.”
Facebook (now Meta) bought Instagram ten years agoand pivoted the photo-sharing app into an e-commerce platform.
- Instagram “has become very powerful commercially, especially thanks to the advertising technology that allowed Meta to port from Facebook to Instagram,” says our analyst Sky Canaves. But its e-commerce features have yet to reach that level.
- During the pandemic, Instagram is said to be a “one-stop shop,” for social commerce where users can browse, search and buy items all within the app, Enberg said. . While 35.3% of Instagram users will make purchases on the app next year, Facebook and TikTok will reach 37.0% each.
Why can’t Instagram keep up?
- “People don’t want to use proprietary social media tools,” says Enberg. Instagram didn’t talk about how difficult it is to change consumer behavior. Not to mention the “number of trust issues” that have accumulated in Meta over the past decade.
- Instagram’s ecommerce hiccups can also be attributed to “an external factor called TikTok,” according to Enberg. “We’re seeing TikTok continue to grow in popularity and outpace these other platforms for marketing.”
The clock app is clocked. TikTok takes a different approach as an ecosystem that includes native marketing, pricing, logistics and fulfillment.
- ByteDance’s app monetization is different, following the roadmap of sister-app Douyin in China.
- Douyin operates e-commerce fulfillment centers in China, similar to a retail company. Its acclaimed fulfillment centers in the US will help Chinese consumers bring low-cost products faster to its young American customer base.
- US TikTok users are younger than Facebook or Instagram. This means that their behavior is more flexible, and they may prefer to market directly on TikTok.
Never underestimate the economic potential of teenagers dancing in their bedrooms.
Listen to the full episode.
This first appeared in the Retail Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.
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