The Rise of Social Media: Advertisements, Communities, and Online Sales Revolutionize Marketing – KNfins

The Rise of Social Media: Advertisements, Communities, and Online Sales Revolutionize Marketing

Social media platforms have become the cornerstone of modern-day marketing strategies for businesses across the globe. In the year 2025, it is virtually unheard of for a company to operate without a social media presence. The importance of social media marketing is only expected to grow even further in the coming years, with over half of chief marketing officers expressing a desire to increase their budget for social media advertisements.

Advertisements

As of January 2025, there were an estimated 5.24 billion social media users worldwide, representing approximately 63.9% of the global population. With such a vast audience at their fingertips, it is no wonder that companies are turning to social media to promote their products and services. One platform that has seen a surge in popularity among businesses is TikTok. With keyword searches related to “TikTok ads” increasing by a staggering 1,329% over the past five years, it is clear that companies are taking notice of the potential advertising opportunities on this video-sharing platform.

Research has shown that in-feed TikTok advertisements have a memorability rating 23% higher than TV advertising and 13% higher than other forms of digital video. This indicates that TikTok ads are an effective way for brands to stand out and make an impact on consumers. As companies continue to invest in social media advertising, it is expected that they will also focus on building online communities to engage with their target audience.

Nearly eighty percent of the population claims to be a member of an influential online community. This presents a unique opportunity for brands to connect with consumers on a more personal level and foster a sense of loyalty and trust. One strategy that has proven to be effective in this regard is the use of micro-influencers. Compared to more popular influencers, organizations that employ micro-influencers see a 60% higher engagement rate. Additionally, micro-influencers have a higher conversion rate, with 1.46% of their followers making a purchase, compared to just 0.61% for influencers with 21,000 or more followers.

Looking ahead, social commerce is expected to be a major focus for businesses in the coming years. Social commerce, which involves selling products directly through social media platforms, is gaining traction as a way to boost engagement and revenue. In China, social commerce accounted for 14.3% of all online retail transactions in 2021, demonstrating its widespread appeal in the country. While social commerce currently makes up only 4.1% of total purchases in the United States, Accenture projects that it will reach $1.2 trillion by 2025, growing three times faster than traditional e-commerce.

In conclusion, the influence of social media on advertising, community building, and online sales continues to grow at a rapid pace. With billions of users engaging with social media platforms daily, it is essential for businesses to have a strong presence in this digital landscape. By leveraging the power of social media marketing, companies can reach a vast audience, cultivate online communities, and drive sales in ways that were previously unimaginable. As we look towards the future, it is clear that social media will play an even larger role in shaping the way businesses connect with consumers and drive growth in the years to come.

Picture of Ella Bailey
Ella Bailey

an editor at KNfins since 2024.

DISCLAIMER:

You will never be asked to make a payment to access any kind of product, including credit cards, loans, or other offers. If this happens, please contact us immediately. Always read the terms and conditions of the service provider you are contacting. We earn revenue through advertising and referrals for some, but not all, products displayed on this website. Everything published here is based on quantitative and qualitative research, and our team strives to be as fair as possible in comparing competing options.

ADVERTISER DISCLOSURE:

We are an independent, objective, and advertising-supported editorial site. To support our ability to provide free content to our users, recommendations appearing on our site may come from companies from which we receive compensation as affiliates. This compensation may affect the manner, location, and order in which offers appear on our site. Other factors, such as our own proprietary algorithms and first-party data, may also affect how and where products/offers are placed. We do not include on our website all financial or credit offers currently available in the market.

EDITORIAL NOTE:

The opinions expressed here are solely those of the author and do not represent any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved, or endorsed by any of the entities mentioned in the message. That said, the compensation we receive from our affiliate partners does not influence the recommendations or advice that our team of writers provides in our articles, nor does it in any way affect the content of this website. Although we work hard to provide accurate and up-to-date information that we believe our users will find relevant, we cannot guarantee that all provided information is complete and make no statement or warranty regarding its accuracy or applicability.