Meta will unlock the next chapter of eCommerce growth - with rapidly growing reach and conversion beyond any other media network today

The challenge many advertisers face in this environment is how to allocate investments to maximize online sales. This is not a new challenge. It is one though that is increasingly top of mind with profitability concerns mounting and the re-emergence of hybrid retail behaviors.

New research and evidence has shown that Meta technologies drives incremental growth that can be sustained and scaled to billions - with shopper reach that is more than 2.8x of all marketplaces combined⁶

Massive Reach Unlocking Demand Creation and Discovery

From the latest earnings call¹ Meta has over 3.74 Bn users, the highest it has ever been. Within APAC, user growth continues across the Facebook and Instagram platforms even on a very high base. Given its massive lead over eCommerce platforms in terms of active users, Meta is well positioned to funnel shoppers from the larger audience universe into a targeted eCommerce buying journey.

This massive reach has resulted in an outsized impact on new product and service discovery as well as the creation of demand at the very top of the shopper funnel.

An analysis of 227 conversion lift studies² across the consumer goods, tech and e-commerce verticals has shown that Meta commerce solutions are able to drive significant sales impact across the entire funnel, most especially in the upper funnel stages (+28% vs. baseline). During Mega Sales Days, it was also found that Meta solutions drove 88% new buyers in the four weeks leading up to the actual sales day.

Meta’s Wide Range of Ad Capabilities and Formats Generates Synergies

Driving Penetration and Loyalty

Studies with Kantar have shown that Meta can provide up to 40%⁴ more sales when balancing investment across its brand and commerce solutions, generating growth both from finding new customers and increasing purchases by retargeting existing ones.

Multiplier Effect from Immersive Creative Formats and Machine Learning

Meta platforms provide a breadth of formats (e.g. video, messaging, shop ads, reels), powered by artificial intelligence that continually optimize based on user preferences and tendencies.

This has allowed Meta to be a powerful enabler of multi-channel commerce.

Investing in Meta can drive sales with strong ROI across multiple channels - including marketplaces, DTC sites, messaging or even via traditional offline touchpoints. Utilizing its portfolio of commerce solutions including Advantage+ Shopping Campaigns, Collaborative Ads, Click To Messaging Ads and Creator Commerce Tools can be used with synergistic effect to drive more efficient conversions.

Multiplicity is the term we use to capture how we have multiple entry points and experiences, combining to provide an environment for optimal business outcomes. As users continuously flow through discovering, browsing and shopping online, we see that a combination of brand experiences work best to influence behavior change. Studies have shown that campaigns perform up to 2.7x better when leveraging Multiplicity and the principles behind it.

Relative to other platforms, research has also shown that these qualities of Meta platforms have led to them being preferred by users for both Connection and Entertainment. This means potential shoppers are in the mindset of engaging and learning about brands/products - more so than other social channels, marketplaces or chat apps.

Compounding learning leveraged at scale

Meta continues to make large investments in the realm of Artificial Intelligence to enhance user experiences through personalization recommendations. This benefits advertisers who want to ensure the right ad is delivered to the right person for the right outcome.

A great advantage of running campaigns on Meta is that this system leverages signals and learnings to inform current and future campaigns. Just this last Q4 in 2022 advertisers saw over +20% more conversions than in the year before. Further use of new signal-resilient and AI-powered solutions like Conversions API and Advantage+ Shopping have been shown in early testing to drive metrics like Return on Ad Spend (+32%) better cost-per-action (+17%) in case studies⁵

Many new ad mediums and technologies across platforms, whether they be e-commerce marketplaces or aspiring superapps may offer strong initial ROIs on campaigns.

The evidence consistently shows though that Meta holds the strategic sweet spot - providing incremental growth through efficient reach and conversions while being able to sustain this performance with scaled investments over extended periods.

For advertisers looking to sustainably and rapidly scale up their eCommerce business, Meta should definitely continue to be seen as a core partner in their journey.