Next year, US retail social commerce sales will total $82.82 billion, growing 23.5% YoY, per our forecast. Gen Z will likely be driving this growth, as they are overwhelmingly more likely to make purchases via social platforms than the overall population, according to Jungle Scout.
And not far behind is Gen Alpha, who even at a young age, are discovering brands through social media, paving the way for even higher social commerce sales in the future, per Razorfish.
“Unlike generations before them who were consuming video content primarily on TV, Alphas are learning about brands from the creator content they are watching on YouTube,” said Dani Mariano, president of Razorfish. “From unboxing videos to watching YouTubers play video games, Alphas seek and enjoy self-directed control over their content. They love the excitement that these types of videos provide and imagine themselves in these situations.”
5. Retail media’s success depends on both networks and advertisers