WunderPredicts #5 Social Commerce Considering the souring sentiment toward Will Take Flight For instance, a consumer may discover a brand spend from Meta & Co., heightened focus on on Instagram through a post from their favorite brand websites and strategic shift of spend, we influencer, then navigate to the brand’s predict that social platforms will step-up Instagram page to follow and browse products, efforts for end-to-end shopping in-platform eventually checking out through Instagram’s via social commerce. Source native shopping functionality. Further, easing their reliance on third-party Following this, the consumer continues to stay cookies is the only way to display verifiable within Instagram’s orbit, receiving personalized analytics and underscore their value to brands. ads and relevant posts in their feeds that have It worked in China, and we predict social US Retail Social $79.6b been selected by Instagram’s algorithm. The platforms in the US are similarly going to go all- Commerce Sales $67.3b brand is nixed from the journey. in (TikTok recently started piloting an Order $56.2b Centerafter reversing its earlier position and greenlighting LiveShopping in the US). $45.7b $36.6b The pivot from content to commerce has $27b been strategic –Meta has been steering Instagram’s positioning toward a marketplace As McKinsey notes – model for years and 70% of consumers now “In e-commerce, brands should always say they open the app with the intent to 2020 2021 2022 2023 2024 2025 direct consumers toward their own discover or shop. Once the domain of Pinterest channels where they can develop a alone, this is now a zone of opportunity for 3.4% 4.0% 4.4% 4.7% 5.0% 5.2% direct relationship with customers, fledgling giants losing their shine. collect insights on customer behavior, % of total retail sales and capture a higher share of Brands investing in social commerce should be customer spend.” cognizant of the risks. Social commerce is changing the ideal brand-led purchase journey, creating an experience that, in some cases, circumvents brand-owned channels.