Average Order Values Fuelled by Social Media Exposure Analysed
18 April 2019 - 17:36 by Mike Price
A study from Nosto has revealed that certain social media sites which drive consumers to carry out safe shopping online are more impactful than others when it comes to stimulating significant spending.
The most powerful platforms in terms of average order value (AOV) were found to be image-sharing site Instagram and post curation platform Pinterest.
The latter is by far and away the most valuable to advertisers, with conversions achieved via paid posts netting typical transactions worth $154 (£118) for retailers.
Over on Instagram this average sits at $103 (£79), which is quite a bit lower yet still suitably healthy for any prospective brand to consider worthwhile. Meanwhile, Facebook is much less likely to coax users to commit to big purchases, with an AOV of just $69 (£53).
It is also sensible to consider the actual rate with which users of these platforms are converted into paying customers on retail sites, in which case Facebook leads the way. Its conversion rate of 1.24 per cent is undeniably low, but still manages to be higher than any of its counterparts.
Looking at conversions rates this miniscule might make it seem like social media sites are not ideal for advertisers and retailers to use to win over new customers. However, the reality is that with hundreds of millions, if not billions, of users flocking to these platforms every day, even conversions this low result in big sales boosts.
Instagram’s value as a marketing platform has been widely touted, so it is interesting to see Pinterest take the lead and convince more users to commit to high-value purchases. This might prompt a change in strategy amongst some brands, especially as it is fashion items that tend to generate the most interest on these image-focused services.