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DigitasLBi Study Expects Growth in Commerce Sales [Professional Services Close - Up]
[September 20, 2014]

DigitasLBi Study Expects Growth in Commerce Sales [Professional Services Close - Up]


(Professional Services Close - Up Via Acquire Media NewsEdge) With U.S. social commerce sales expected to reach $14 billion by 2015, and social networks like Twitter and Facebook ramping up their commerce capabilities, a new survey commissioned by DigitasLBi and conducted online by Harris Poll shows that while only 5 percent of Americans have made a purchase on a social media site, 20 percent would consider doing so.



"Our study reveals tremendous untapped potential for growth in social commerce, especially among younger consumers," says Tony Weisman, CEO, DigitasLBi North America. "The 5 percent of Americans who have made a purchase on a social media site equates to around $14 billion in online retail revenue. If we can reach 20 percent, that figure scales to $56 billion. To activate that potential, brands and social networks need to provide social shopping experiences that meet the needs of consumers, including security around financial data, privacy, and a seamless buying process." Security of Financial Data and Privacy are Key Components to Driving Social Commerce Growth According to a media release, the survey uncovers a variety of shopping features that what would make social media users more likely to make a purchase on a social network: -Knowing their credit card information was secure (42 percent) -Knowing their purchase wouldn't be shared (38 percent) -A total purchase price under $25 (33 percent) -A "click to buy" feature that would allow users to complete their transaction without leaving the social network (26 percent) -The ability to save payment information within the site, so users wouldn't have to reenter it each time they make a purchase (24 percent) Our research indicates that concerns over financial security have eased somewhat since 2012, when, according to a social commerce study commissioned by DigitasLBi, 55 percent of social media users were not "comfortable" giving credit card information via a social network.

When looking at who has made purchases on social media, the 2014 study shows that age and region play a role: -Those ages 18-34 are more than three times as likely as those ages 35 or older to have made a purchase on a social media site (11 percent vs. 3 percent, respectively) -Nearly one in ten parents with a child under age 18 has made a purchase on a social media site (9 percent) -Those in the South are more likely than those in the Northeast to consider making a purchase on a social media site (24 percent vs. 15 percent) -Over a third (35 percent) of social media users would use a hashtag when purchasing on a social media site if it offered a discount on a purchase Among social media users, a majority (85 percent) still report they would rather make purchases from an online retailer (e.g., Amazon.com, Walmart.com) where sharing is not a central function of the site. Despite these findings, a deeper look reveals that those ages 18-44 (33 percent) are more than twice as likely as those ages 45 or older (18 percent) to say they would consider making a purchase on a social network.


More information and complete details: www.digitaslbi.com/us ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved.

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