“Ideas don’t come out fully formed. They only become clear as you work on them.” – Mark Zuckerberg
There are plenty of social media platforms that users engage with. However, only a handful of companies boast massive user bases with strong engagement.
In Reuters Institute’s 2020 Digital New Report, 63% of respondents noted they had used Facebook in the past week, compared to 61% for YouTube, 36% for Instagram, and 13% for Snapchat.
The E-Commerce Opportunity
When thinking of e-commerce, most people with likely think of companies like Amazon, Etsy, and eBay which are online marketplaces enabling sellers to connect with buyers.
Not many people may think of social media platforms.
However, companies like Snapchat, YouTube, and Facebook have made strides in e-commerce. Snapchat announced dynamic ads to provide advertisers with a seamless way to connect products with consumers, while Facebook launched shops earlier this year enabling businesses to sell direct-to-consumers and drive product discovery.
We spoke about this opportunity in Episode 6 of our Inside Scoop podcast. It’s interesting to think of the ignition in e-commerce activity that can result as these companies continue to remove friction points, and what value these players can capture.
Twitter: @_SeanDavid
The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
