“You don’t have to start from scratch to do something interesting” – Jack Dorsey
Over the past decade, social media giants have been able to reach billions of users around the world. As more people continue to get connected to the internet, this trend is far from over.
When it comes to young consumers, there’s no exception. In a recent survey by Piper Sandler, 84% of U.S. teens reported using Instagram at least once per month. This is followed by Snapchat at 80%, TikTok at 68%, and Twitter at 39%.
Social Media E-Commerce Opportunity
The primary monetization method has been selling ads to advertisers and focusing heavily on providing a quality experience for active users. But in today’s world, the landscape is changing quickly.
Apps such as Instagram have rolled out Instagram Shops enabling users to purchase goods through a seamless in-app experience (similar to Amazon).
For sellers, the value proposition in social media e-commerce is attractive as well — being able to access billions of potential consumers and establish a direct-to-consumer relationship. Other companies like Pinterest and Snapchat have explored social commerce, but one thing remains clear – it’s still in its early innings.
The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.