Digital American Newsletter

For years social media as an ecommerce platform has been listed on trend lists as “coming next year.” In 2020, “next year” has finally arrived.

• 87% of ecommerce shoppers say their shopping decisions are influenced by social media.
• 76% of 18-34 year olds are interested in buying directly via social networks.
• 32% of American women of all ages have already purchased something on a social platform. Another 24% are interested in doing so.
• Among those who have bought an item via social media, 62% used Facebook, 38% used Instagram.
• Facebook has aggressively moved into social commerce, rolling out new Facebook Shop and Instagram Shop this spring and summer.
• It is rumored that one of the reasons Walmart is interested in buying TikTok is its social shopping success in China. Walmart wants to leverage that strength in the US and other markets.

It’s becoming clear that social commerce will be part of the ecommerce success story of 2020 and beyond.

Sources: Absolunet 2020, Emarketer 2020, PYMNTS 2020, Yahoo 2020

The stereotype of reclusive gamers living in their basements, never talking to anyone has been completely shattered by the pandemic. Gaming’s popularity is sky-rocketing, and a key reason why is that it builds social connections and community. Here are the fast facts.

• 75% of Americans, around 244 million people, play video games now, up 15% vs 2018.
• 70% of gamers play with other people. Multiplayer gaming, with text, chat, or live video that helps players connect in real time is booming.
• Hours spent gaming, and time playing with people in other generations are both increasing.
• Consumers are shelling out significantly more money on game hardware, software, subscriptions, accessories and in-game items this year versus last.
• 39% of Americans play online games to reduce their stress. That is greater than the percent who are exercising, reading or meditating to stay calm.
• Psychologists say that multiplayer gaming has a wide range of positive social effects. It increases the sense of community without people being physically present. Players can join teams that work towards a goal, creating a shared purpose. And the little wins that come at regular intervals during a game make everyone happy.

The psychological positives from gaming that have emerged during the pandemic are in stark contrast to concerns about social media—that it is divisive, provokes negative interactions and can harm self-esteem.

Sources: Decision Analyst 2020, Deloitte 2020, Game Industry Biz 2020, Geek Wire 2020, Marketing Insider 2020, The NPD Group 2020

Subscriptions and auto-replenishment services for consumer goods have more than doubled since February 2020, with 38% of US shoppers placing an online subscription order in April/May. Roughly half were first time subscribers. Health and beauty items, shelf-stable food and beverages, and cleaning products were the most popular categories.

Interest in subscriptions is increasing among non-users, too. 34% would now consider a subscription service for pet food, 28% for meal kits, 19% for supplements and 19% for coffee products.

Auto-replenishment and subscriptions are booming because they meet the needs of the moment. They eliminate concerns that popular items will be out of stock, check something off the To Do List, and often save money. Some subscriptions also include an element of surprise, which is sorely missing in many consumers’ lives.

Shoppers have strong preferences for the details of auto-replenishment and subscription options. Of course they want free delivery. Being able to pause the service, reschedule individual deliveries, and adjust the time between deliveries are highly desirable as well.

Sources: Acosta 2020, Acupoll 2020, TechFirst 2020

Over 900 advertisers now support #Stophateforprofit, boycotting Facebook advertising during July because of the platform’s approach to hate speech. The real test comes in August when Facebook likely won’t have met the campaign’s demands and marketers must decide what to do next.

Many brands have started preparing for a future without (or with less) Facebook. They note that Facebook usage and engagement have been dropping steadily among key demographics, and that slide is projected to accelerate. They already planned to reduce their spending on the social platform, and #stophateforprofit just speeds up their timeline for moving to new marketing tactics.

Others, like Unilever, have announced they are pulling all advertising from Facebook, Instagram and Twitter till the end of 2020, while maintaining their total marketing budget. They clearly already have a plan.

Finally, some brands are using very nuanced definitions of “advertising on Facebook.” They continue to advertise on Instagram and via Facebook Audience Network. I assume their businesses are so dependent on social media they cannot risk changing direction.

When August 1 arrives, many marketers face a difficult decision: how to weigh the cost of taking a principled stand aligned with their brand values vs the potential impact on sales.

Sources: Digital News Daily 2020, Drum 2020, Gizmodo 2020, Reuters 2020

Dark social accounts for somewhere between 60% and 85% of all digital information shared.

What the heck is dark social?  It’s digital content shared in ways that cannot easily be tracked by marketers. It includes messaging apps (like WhatsApp), private parts of social media (Facebook closed groups for example), and ephemeral content platforms (think Snapchat.)

The rise in dark social was initially led by Gen Z on a quest for privacy. Its growth has been supercharged recently by all generation’s desire to re-create the real life camaraderie of small groups during the isolation of quarantine and social distancing.

Personal photos and entertaining videos top the list of the most shared items on dark social. At the same time, roughly 50% of users pass on website links, information about discounts, and product recommendations via dark social, making it very valuable to marketers.

Companies are tapping into dark social in creative ways.  Some are setting up Facebook private groups to gather consumer feedback.  Others are collaborating with micro-influencers (1-10K followers) that have custom-built communities.  Still others are giving shoppers the opportunity to opt in to receive private, truly personalized purchase recommendations via messaging apps.

Sources:  GlobalWebIndex 2019, Media Post 2020, Vogue Business 2020

Photo by Andres Jasso on Unsplash