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‘Social commerce’ boom proves a strong influence for investors

March 30, 2022

‘Social commerce’ boom proves a strong influence for investors

Investors are pouring money into influencer marketing and content creation platforms as consumers worldwide spend hundreds of billions on purchases facilitated by social media.

Investors are pouring money into influencer marketing and content creation platforms as consumers worldwide spend hundreds of billions on purchases facilitated by social media.

More than US$1.3 billion in venture was pumped by investors into the ‘creator economy’ – the name given to a global market of ~50 million independent content creators – in 2021 as the sector itself grew into a US$104.2 billion industry, data from Influencer Marketing Hub shows.

The money comes as marketing professionals increasingly turn to content creators and ‘influencers’ – people with sizeable, trusting and engaged social media followings – to advertise and promote their products and services.

Research by Influencer Marketing Hub showed 75% of marketing professionals intend to dedicate a portion of their budget to this influencer marketing channel in 2022, while 68% signalled their intention to increase spending on influencers this year.

Consumers turn to new sales channel

The influx of new money into the creator economy – from both marketers and investors – has come as consumers themselves are adopting new ways of shopping, the research suggested.

In 2020, consumers spent US$580 billion on purchases made through their social media platforms, but by the end of 2022 this figure is expected to have lifted to US$958 billion.

By 2026, the value of this social commerce market is tipped to reach almost $3 trillion. 

Data sourced from Influencer Marketing Hub and Statista

Although this sales channel has so far been predominantly adopted by Chinese consumers, Western shoppers are expected to see an increase in social commerce purchases in the years ahead.

Influencer Marketing Hub estimated that social commerce will account for 17% of all e-commerce spending by 2025.

To learn about an upcoming wholesale investment opportunity Reach has in this space, join TRIBE CEO Anthony Svirskis and founder and CIO Jules Lund for an investor briefing this Tuesday, 5th April, at 11am (AEST). In the session, Mr Svirskis and Mr Lund will discuss how their tech-based platform has the potential to disrupt the steadily growing US$13 billion ‘influencer marketing’ industry. To book in, click here.

Reach Markets are the advisors assisting with the management of this offer and may receive fees depending on whether an offer is taken up by investors.

Sources


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