Gone are the days of desktop shopping and calling up a store for information. Mobile devices have taken the world by storm and have revolutionized the way we communicate, gather news and shop for products and services. With nearly half of the global population relying on smartphones and tablets to access the web, businesses are capitalizing on this trend and investing in mobile advertising. In 2020, the spending on mobile advertising reached a record 223 billion dollars worldwide, and it is expected to surpass 339 billion by 2023.
But it’s not just advertising, digital commerce is also seeing a surge. In 2022, digital commerce spend crossed the $1 trillion mark, marking the highest year of digital commerce ever. Mobile devices are leading the charge, accounting for almost 40% of digital consumer retail spend in Q4, surpassing the spending on desktop devices. Social commerce is also playing a growing role in the retail world, with sponsored content by retailers receiving higher engagement on platforms such as Facebook, Instagram, and TikTok.
The data indicates that convenience is a major factor in consumer shopping behavior, with mobile commanding nearly half of all digital transactions in Q4. The pandemic has also played a role in the growth of digital commerce, with spending increasing from $705 billion in 2020 to $1 trillion in 2022.
Seamless and convenient online purchasing is driving social commerce gains, with engagement with sponsored content by retailers and CPG brands growing significantly on Facebook and Instagram. TikTok has seen tremendous growth as well, with views of retail and CPG content reaching 12.1 billion views in 2022.
However, the real test for these platforms remains whether they can turn the interest into sales. While social commerce is projected to grow to $1.2 trillion by 2025, platforms and their strategies are still in the early stages. Instagram recently announced the removal of its Shop tab, while TikTok is reportedly building product fulfillment centers in the U.S. to enhance its social commerce capabilities.
The mobile revolution has changed the way consumers shop and has created new business opportunities. As the mobile marketing market size is expected to double by 2024, businesses must seize the chance to promote their products and services through mobile advertising and digital commerce. The future of shopping is in the palm of our hands, and businesses must adapt to stay ahead of the curve.