he Role of Social Media in Digital Retail Marketing
- 1. The Role of Social Media in Digital Retail Marketing
- 2. Evolution of Social Media in RSA
- 3. Commercial Impact of Social Media Revenue Growth Through Social Commerce: +Social platforms have become digital storefronts. +Consumers now browse, shop, and transact directly within social media platforms like Instagram, TikTok, and Facebook. +Features like Instagram Shops, TikTok Shop, and Facebook Marketplace turn engagement into instant sales. +The seamless shopping experience reduces friction and enhances conversion rates.
- 4. The Consumer Journey The mindful consumer …but open to new brands. Less impulse purchases Conducting more research …but want it curated. Looking for quality …but at the right price. Looking for a good deal …but aligned to values. Today’s mindful consumers have several needs which may seem conflicting.
- 5. Social Media Matters in Retail + Why Social Media Matters in Retail: + High mobile penetration (smartphones as a key channel). + Growing reliance on online platforms for shopping and brand interactions. 0 5 10 15 20 25 30 35 40 45 50 SOCIAL MEDIA USERS IN SOUTH AFRICA Chart Title Active Internet Users Active Social Media Users
- 7. Technical Developments Integration of AI tools for chatbots and personalized marketing. Analytics and Data-Driven Decisions: +Social media data to optimize campaigns +Know the customer better
- 8. Area Solution Status Segments Best sellers New Arrivals Hidden Gems High Trending Products Poor performers Product Insights PI Filters FB Data GA Data Business data (ie return rates, margin data) Google Insights Using Google shopping to optimise Meta Ads Creatives Basic dynamic template Advance Dynamic templates Product Performance Strategies Performance, strategies are used, and more to explore Dynamic ads using ROIH Graphic Templates
- 9. 9 In 2025, social teams that master social listening will earn more credibility and budget by delivering valuable insights that drive growth
- 10. Sources: 1- These results were derived from a scaled backend test comparing the performance of two identical vs two non-identical (creatively diverse) creatives in 2703 ad sets across verticals from 04-04-2021 to 04- 26-2021. This analysis was limited to static ads only. *Visual similarity as defined by distance in a vector-based, ML-derived mapping of image contents., 2- We found that the more visually distinct the creatives,* the higher the performance lift of diverse creatives over identical creatives. We saw that the lift in performance (in test vs control) was 32% when the creatives in the diverse cell were most visually distinct,* compared to 2% when the creatives in the diverse cell were most visually similar.* Same product, different motivations Diversifying messages, visuals and formats enable AI to deliver the most relevant ad. 32% increased efficiency1 Diversified creative drives: 9% incremental reach2 “This moisturizer is exactly what I need for my skin.” “I can’t pass up this great deal!” “This product was recommended by a creator I trust.” “I’m looking for dramatic results.” Creative diversity
- 11. AI improves when given a larger pool of opportunities Performance marketing has historically focused on detailed segmentation to increase relevance. Today, starting broad enables AI to deliver increased relevancy and effectiveness. Illustrative shoe brand discovering new segments using a simplified approach Sneaker collectors Breathable sneakers New mom looking for comfortable shoes Health enthusiast Runners Sneaker collectors Fashion trendsetters FEMALES AND MALES 18-54
- 12. A/B Testing compares different strategies to determine which one best drives results Identify the most efficient winning ad set. RANDOM GROUP
- 13. The Content Creator’s Economy These creators harness digital platforms like YouTube, Instagram, and TikTok to reach global audiences, often becoming influential figures in various niches. Micro and Nano-influencers enable brands to connect with an engaged niche community, increasing sales in targeted demographics.
- 14. The Content Creator’s Economy The trend is particularly dominant on TikTok, where users promote affordable alternatives or "dupes" to expensive or sold-out products, encouraging practical and budget-conscious shopping habits. + Implication for Retailers: • Growing demand for affordable and value-driven products. • Opportunities for brands to align with authenticity and transparency. • Potential to market "dupes" or alternatives to premium products to appeal to conscious consumers.
- 15. Social media has transformed the South African retail landscape by driving engagement, enabling commerce, and shaping consumer behavior.