Brands boost social commerce spend despite western slow uptake

A new report from Forrester has found that 77% of B2C marketing executives are investing in social commerce strategies, despite facing significant challenges in areas such as product discovery and customer data access.

The Forrester report, titled The State Of Social Commerce, highlights considerable growth in social commerce globally, but points to marked differences in adoption between regions. While interest and investments continue to rise, progress in Western markets remains slower compared to countries in Southeast Asia and Latin America, where consumers are engaging more actively in shopping through social platforms.

Regional differences

According to the research, regional disparities are especially notable when comparing major markets. In metropolitan India, 39% of online adults make purchases via social networks every week, a figure significantly higher than the 10% reported in the United States and 8% in Australia. This gap underlines uneven adoption trends and the differing pace of social commerce uptake worldwide.

The report also reveals that of the B2C marketing executives surveyed, 68% consider social commerce investment to be a high priority for the coming 12 months. This emphasises a continued push from brands to capitalise on consumer behaviour shifts toward social platform-based shopping.

Challenges to adoption

While investment levels are high, a number of obstacles persist. The report identifies suboptimal product discovery, difficulties in accessing meaningful customer data, and a weak value proposition for loyalty programmes as some of the main barriers for brands seeking to achieve scale or wider success in social commerce.

Additionally, many brands are finding it challenging to navigate the lack of actionable insights and limited infrastructure within established social media channels, which restricts the ability to personalise offers and boost loyalty among shoppers.

Creator-driven growth

The influence of online creators is singled out as a driving force in social commerce, particularly among younger consumers. Over one-third of young shoppers are now purchasing directly based on creator recommendations, pointing to the growing impact of creator-driven content and entertainment-led commerce models on purchase decisions.

"The rapid growth of the creator economy represents a major transformation in the way brands engage with consumers, and the future of social commerce will be creator-led," said Kelsey Chickering, principal analyst at Forrester. "While the current social commerce experiences and walled gardens stunt commerce growth on social media, don't discount the power of these channels to influence consumer purchase decisions. Brands should conduct focused social commerce experiments using suitable categories, buzz-worthy product drops, and creator partnerships to get consumer attention."

Platform performance

The Forrester report points to increasing transaction volumes on leading social platforms. TikTok, for example, saw a 165% year-on-year increase in shoppers during Black Friday and Cyber Monday in 2024, with the platform recording USD $100 million in gross merchandise value on a single day. This trend highlights the potential for high engagement and significant revenue generation through active social commerce strategies.

Engagement features such as live shopping, limited-time offers, and exclusive creator drops are helping to blur the lines between content, entertainment, and retail, resulting in a more integrated shopping experience geared to drive impulse purchases and immediate conversions.

Recommended strategies

Forrester's findings suggest that organisations aiming to expand their presence in social commerce should specifically test product categories that work well for spontaneous, socially driven purchases. Expanding affiliate marketing programmes to include influential creators, as well as leveraging exclusive drops and collaborations, are also identified as effective ways to boost engagement and sales.

The report advocates for a data-driven, experimental approach, making use of creator partnerships and monitoring consumer responses to improve product discovery and customer experiences within social commerce channels.