Charts: Social Media’s Impact on Ecommerce Revenue

Social media’s impact on global ecommerce revenue varies depending on the platform.

Almost half of Pinterest users shop on the site. Pinterest users also generate the highest average order value, at $154, versus other social media channels. Less than 10 percent of Snapchat and Twitter users shop for goods or services on those sites.  Moreover, the average ecommerce conversation rate from Snapchat- and Twitter-generated visitors is roughly 1 percent. This compares to 3 percent for visitors from Pinterest.

Accessing the total potential ecommerce revenue from social-media traffic requires a comprehensive view of each platform:

• Percentage of users that shop for products,
• Total number of users,
• Average conversion rate,
• Average order value.

Taking this approach, Facebook has the highest revenue potential overall by applying this formula:

Revenue Potential = (Number of Users) x (% of Users That Shop) x (Avg. Conversion Rate) x (Avg. Order Value) 

However, one could argue that the value of social media is brand awareness, not immediate sales. In that case, which social site has your company’s targeted demographic?

Snapchat and Instagram are your best choices for a younger demographic, with Snapchat offering a more balanced male to female ratio. Pinterest is used mostly by females between ages 18 to 64. Twitter, by contrast, has mostly male users. Facebook users include all ages, both male and female.

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