It’s no secret performance marketing on social media platforms isn’t what it used to be but it’s where consumers reside. A new report by Euromonitor International on the top five digital consumer trends in 2024 suggests that consumers want more power in their relationships with brands and are using social media to give them a greater voice. Michelle Evans, global lead of retail and digital insights at Euromonitor International, said in a statement that “consumers are also seeking mor
ng more power in their relationships with brands”. “With twice as many digital consumers in the world as compared with a decade ago and the spend for goods and services online more than doubling in that timeframe, it is important to prepare strategies with these digitally savvy shoppers in mind,” added Evans. A new guard of social media apps is entering the marketplace giving retailers and brands a new opportunity to connect with potential consumers. Meet the new players Meta’s Facebook and Instagram, alongside TikTok, have had a chokehold on performance marketing, but there is a new cohort of social media apps ready to offer a new platform for brands to leverage. There are a slew of new photo and video apps including Orme, Douyin, Lemon8 and Stylemine that are looking to disrupt the industry and offer new ways to connect consumers with products. Orme, co-founded by Xcel Brands and Kconnect Bio, is still in its beta stages but is positioning itself as a next-generation video commerce marketplace specialising in short form and live stream content. Robert W. D’Loren, chairman and chief executive officer of Xcel, said in an interview with WWD that “[Orme] is going to change everything about the way people think about sharing information, brands and products over social media.” The new app pays its users for creating and sharing content and generating sales, essentially forging an online community where product referrals are not only encouraged but also incentivised. Xcel Brands Inc. indicated in a statement that the video boom for brands shows no signs of slowing down and in fact “The short-form video and social commerce market is growing rapidly.” “Affiliate and banner marketing is a US$12 billion market globally, with video shopping projected to be a US$35 billion market in the US in 2024. Social media influencer marketing spend by brands was around $16.4 billion in 2022 and is increasing at a rate of 18.8 per cent per annum.” Consumers have historically appreciated the brands that are early adopters of new apps as they can establish an organic connection. Moreover, brands have the opportunity to capitalise on the organic reach that is afforded in the startup phase of social media apps. However, quickly amassing a following or achieving virality is not enough to cement a long-term relationship with consumers. Putting your best foot forward When it comes to marketing on social media channels, new and established, brands should be advised to look beyond the instant results and metrics. E-commerce growth strategist, Mal Chia, suggests a merging of brand marketing and performance marketing would be the most tactical approach. “Historically, we’ve seen performance marketing laser-focused on immediate goals like clicks and sales, while brand marketing played the long game, aiming for broader, less tangible targets like awareness and brand preference,” Chia elaborated. “But here’s the twist: the line between the two has blurred, giving birth to ‘brandformance’. This new paradigm acknowledges that brand and performance aren’t rivals; they’re partners in crime.” Brands can use the tools afforded by social media apps to generate targeted advertisements using data to create conversation-optimised campaigns that could facilitate authentic sales. There is an opportunity to foster long-term consumer loyalty and advocacy with a combination of virtual performance marketing and brand marketing. In 2024, brands’ online presence and advertisements will be held to a higher standard than ever before and an opportunity for growth is afforded by the bar being raised. “As markets become more saturated and consumers more discerning, the emotional connection and authenticity that brand marketing offers will become increasingly valuable,” concluded Chia.