Spreading Social Media Spend May Help Brands Reach 63% of Consumers

For eCommerce brands heavily reliant on social media for sales and awareness, every day can bring a fresh round of worry.

How much longer will TikTok be vulnerable to a nationwide ban, leading to a possible shopping channel pullback? Could another well-lauded innovation tank when it hits the market, after retail advertising spend may already be sunk, such as with the metaverse? Or might Twitter once again suddenly forbid mention of competitors, at the risk of account banning — just to reportedly have its CEO orchestrate a full-court press to lure advertisers back?

All the back and forth is nearly enough for a brand to give up on using social media altogether for promotion and sales. But, as noted in the PYMNTS’ April “ConnectedEconomy™ Monthly Report,” social media remains an efficient way for brands and others to tap their potential consumer base.

As of March, the average share of consumers participating in social media activities was 63%, and the figure has been above 60% for more than one full year. Possible access to nearly two-thirds of all U.S. consumers is an opportunity that no brand would be excited to pass up. Brands, despite concerns about navigating the turmoil of individual platforms, may not have many alternatives besides strategizing to avoid these hiccups and maximize their reach.

Even barring the trials and tribulations of particular social media firms, individual platforms are subject to the vulnerabilities of today’s volatile economic landscape. These may include investors demanding profit over potential growth and downshifts in digital ad spend.

The benefits for brands with an effective social media presence can be immense. For example, retailers and brands have seen early success using Meta’s new advertising tools through the company’s Managed Partner Ads Lite and local inventory ads solutions. Additional PYMNTS research found that 46% of millennials along with 37% of the population as a whole search for restaurant information via social media. For the sector, having an active page has become table stakes.

Aside from existing innovations, social media as a monetizing outfit is going through an evolution. Platforms are testing the profitability of reimagined app advertising, newfound strategic partnerships, and the possibilities of AI on advertising and machine learning to scour leads.