New research suggests TikTok has become the most shopped social channel, overtaking Instagram and Facebook and thus becoming the platform retailer have to consider in 2023.
Users are now making 10 purchases a year on TikTok, compared to 9 on Meta channels according to a survey of 1,000 UK shoppers by the Retail Technology Show. Purchase rates are even higher for Gen Z, with the poll showing this demographic makes an average of 19 purchases through the TikTok platform every year – almost double that made by the average UK shopper. This compares to 18 purchases on Instagram and 15 purchases this demographic makes on Facebook.
Having reported a a five-fold surge in revenues last year, growing to $1billion turnover across its international markets, TikTok’s UK and European sales rose by 477% in 2022, as it continues to grow its market share of the coveted 18-25 year old demographic, which are estimated to make up 60% of the social channel’s users.
Burgeoning demand, driven by Gen Z consumers, is seeing TikTok’s ad revenues flourish. In 2022 analysts estimated that it generated $5.96 billion from advertising sales – more than Twitter and Snapchat combined.
While Gen Z’s social channel adoption and usage continues to grow, so too is their adoption of the Metaverse when it comes to shopping, with 42% of Gen Z already interacting with brands through this channel, according to the research.
While Gen Z’s social channel adoption and usage continues to grow, so too is their adoption of the metaverse when it comes to shopping, with 42% of Gen Z already interacting with brands through this channel.
While on average UK shoppers had made just over 8 purchases in the last year on Roblox, Gen Z now makes almost 17 purchases each year, surpassing the number of purchases this demographic makes on Facebook (currently 15 per annum), suggesting the Metaverse is ow very much entering the commerce mainstream.
Last year, for example, Nike’s Nikeland, one of the very first proof of concepts for mainstream metaverse commerce on Roblox, saw 21m users visit its Roblox store, while beauty brand NARS said it saw 19.6million redemptions of virtual goods on the platform via its NARS Color Quest activation.
Social media’s star has been rising for some time as both a viable and lucrative commerce platform for retailers. However, as this sales channel matures and adoption amongst shoppers continues to grow, we’re now seeing a shake-up of the status quo.
With new platforms and new evolutions of social commerce itself, such as the Metaverse, becoming more mainstream, shoppers are migrating towards these new formats, with TikTok now leading the way as the most shopped social network.– Matt Bradley, event director for the Retail Technology Show