New Report Explores Brand Opportunities In Burgeoning World Of ‘Community Commerce’
TikTok, Publicis Groupe and World Advertising Research Center are out with a new report about emerging opportunities for brands in what they call “community commerce.”
That’s not to be confused with “social commerce,” which the report describes as the fast-growing retail opportunities and solutions presented by social media, often amplified by paid display media and other dynamics.
Community commerce, by contrast, is a more organic concept the report defines as “entertaining, compelling content that just happens to feature brands. It is creator-driven, word-of-mouth marketing that has taken over the TikTok platform and injects a new opportunity into content creation on social that is more authentic to its environment.”
On TikTok, 80% of users say the platform helps them get ideas about brands and products they’d never thought of before, according to the report. And that’s accelerating consumer migration online.
Brands, platforms and creators have responded by speeding up developments that make the most of community commerce opportunities. The key for brands, the report says, “is to be willing to test and learn in a fast-changing environment.”
The report also found that in the stimulating online environment, social media is inspiring over 70% of consumers to shop, even when they aren’t looking to. Social media has disrupted the purchase journey and “creativity is a key factor in attracting and retaining the audience’s attention, helping customers to discover new products and services, and helping brands to stand out from the competition.”
Marketers are advised to build a sense of community around their brands in order to “open up the conversation to a broader, more committed and connected audience.” It’s also important to align with the right content creators, based on the audiences brands want to reach.
And getting the tech stack right is critical, per the report, to “ensure a seamless transition from discovery to purchase, for optimum conversion rates.” Customers are pretty demanding these days and “expect to click and buy instantly.”
The report, “From Discovery To Purchase: The Role of Community Commerce,” can be downloaded here.