Why Social Media is More Important Now than Ever

FinanceFeeds Editorial Team

There are more than 4.62 billion social media users worldwide, that is well over half the worlds population. What is more, this growing industry is also evolving. Not only is this industry growing, it is also changing. People are now using these networks for more than just engaging with friends. Today, social media platforms play a critical role in influencing consumer behaviour both in the B2B and B2C spaces. 

There are more than 4.62 billion social media users worldwide, which is well over half the world’s population. What is more, this growing industry is also evolving. Not only is this industry growing, it is also changing. People are now using these networks for more than just engaging with friends. Today, social media platforms play a critical role in influencing consumer behaviour both in the B2B and B2C spaces. 

In 2022, over 98% of consumers plan to take part in the not-so-new phenomenon called “social shopping.” Social shopping or social commerce leverages off the sense of community and connection created by social media to weave buying and selling into our everyday life. Consequently, social media has become a digital mall, where consumers browse through products and services making buying decisions through interactions with friends, influencers, and brands. 

This channel is set to grow to a size of $1.2 trillion by 2025, which means no brand, retailer, or platform can ignore it. One of the most crucial areas of change is the movement away from traditional search engines, like Google, toward social platforms like Reddit. While it is unlikely you will be looking up “grocery stores near me” on Reddit any time soon, there is a growing trend for consumers to seek validation of purchase choices on social platforms, particularly Reddit, rather than looking at Google reviews.  The cracks are starting to show?

Many of the search engine giants have been receiving increasingly more kickback from users for search results that provide no value to the user. This is particularly true when it comes to technical queries and peer generated reviews which are often unreliable. As a result, users have moved more and more to social sites like Reddit to find relevant and useful results.   

Too Many Ads 

As paid platforms like Google Ads grow in popularity so do the number of ad search results on any search. There is a plethora of research showing the reluctance of users to scroll down below the page fold to gain information. With this in mind, it is obvious why users are becoming increasingly frustrated with big search engines. 

SEO-Targeted Content Lacks Value 

Clever placement of keywords may keep results at the top of SERPs, but some companies have taken advantage of this, abusing the system by keeping low-value content at the top of searchers lists. This means that users find more content that lacks quality. Although Google’s machine learning algorithms have high spam fighting abilities, it’s no secret that most of the content found online looks repetitive.

Unnecessary Suggestions 

Users today are at the “algorithmised mercy” of things happening at Google’s end. It won’t provide exactly what readers are looking for but rather show them what they “really meant.” This drive towards personalisation can actually hamper the user experience.

How Social Media Makes Things Better

The shift to online interactions has been propelled further by the pandemic. Most consumers worldwide now carry both posting and purchasing power on their smartphones. They can use social media as a trusted advisor, much like how they would ask for a friend’s recommendation before making a purchase decision. Simply post a query on your feed and you will receive unfettered responses from family, friends, and strangers – all of which are part of their online community. Post-pandemic, customers have shown an increased reliance on influencers, in the same way, they trust their friends, valuing their opinion and direct reviews over anything mentioned on traditional online platforms. This has especially spiked among Gen Zers and millennials.

Unfortunately the power of this kind of social validation is that you cannot fake it. But there are some things you can do to capitalise off this booming social economy:  

Content Driven: You may not be able to toot your own horn, but posting authentic, engaging, and helpful content can improve your social valuation. Having actionable posts with links to sign up pages or trade now buttons can drastically improve engagement. 

Network Driven: Having a large and engaged audience can help you achieve better social valuation and increase your reach via word of mouth. This is a crucial benefit that is almost entirely unique to social media. If you neglect social media you may suffer poor valuation and the effects of negative word of mouth. 

Experience Driven: Giving your traders a positive experience on your page can give your brand a massive social boost. This can be anything from posting humorous “meme’s” to posting occasional high-probability trade set-ups 

The amount of growth witnessed among social media users was unimaginable 10 years ago. Platforms like Reddit and TikTok are growing exponentially with the latter garnering 8 new users every second.

Despite its seemingly minimal ROI, brokers can no longer ignore social media as a crucial part of any marketing strategy. However, it takes effort to maintain constant interactions across various social media networks. Autochartist can reduce the resources and efforts brokers need to ensure their channels are active and engaging. Our technology can automatically post meaningful content to dozens of platforms, helping brokers capitalise on changing market trends. Contact us to learn more.

Read this next

Executive Moves

Crculus taps Michael Idzkowski as head of sales

Michael Idzkowski has joined Crculus, a UK-based startup that describes itself as a multi-custody middleware infrastructure for financial institutions, in the post of its head of sales.

Retail FX

ActivTrades jumps on fractional stock trading bandwagon

CFDs and FX broker, ActivTrades has updated its trading offering to provide its clients with the opportunity to trade fractions of stocks.

Digital Assets

BitMEX to list its native token by end of 2023

BitMEX CEO Alexander Hoeptner said the crypto exchange is planning to list its native token, called BMEX, on the spot market by the end of the year.

Market News

Forex investments take over popular sentiment as a worthy global trend

Quite the confusion is afoot in the financial markets. Tighter regulation, rising inflation, energy sector disruptions, social unrest and wars have taken a toll on the world’s economies. How come Forex, as a means of investment, has come up on top as a global trend in 2022? Against the backdrop of current events, the international broker’s expert team at OctaFX has gathered some answers.

Crypto Insider, Metaverse Gaming NFT

How Hiding Crypto’s Influence Will Be Key To Unlocking Its Success

In past years, cryptocurrency has advanced well beyond the technophiles responsible for its initial success to reach widespread name recognition. Crypto has found its way into news, music, culture, and other relevant facets of daily life. 

Digital Assets

SCRYPT Digital taps Enclave Markets to mirror dark pool trading in crypto

“A service like this has been sorely lacking in the crypto space. There hasn’t been a solution that provides the security or privacy that institutions require with these kinds of trades.”

Institutional FX

FXSpotStream reports record monthly volume at $1.613 trillion

Trading volumes on institutional FX platforms surged in September after fears over the impact of recent developments around Russia’s military invasion of Ukraine sent speculative asset classes reeling.

Industry News

OKX adds four-time Olympian snowboarder Scotty James as brand ambassador

‘What is OKX?’ is the name of the new multi-milion dollar brand campaign launched by crypto exchange OKX as part of its efforts toward world expansion.

Industry News

Circle buys Elements and announces beta version of Crypto Payments API

“Lowering barriers of entry for payments and financial services and establishing dollar payments utility are core to Circle’s mission.”