Social media in 2023: What to expect

17 January 2023
 
Suzie Shaw.

By Suzie Shaw, CEO at We Are Social

Social media went through a profound metamorphosis in 2022. Elon Musk took over Twitter, Instagram’s hegemony started fading, TikTok became the most downloaded and highest-grossing app globally, BeReal emerged as a new contender, Clubhouse dropped off the ‘hot’ list, and all platforms came up with new features and algorithm tweaks to try and emulate their competitors’ success.

As social networks and media platforms evolve, so do people’s habits – users changed the way they post, where they post, how often they post, the level of polish of their posts, and the very content of their posts. Australians can’t seem to get enough of social media; usage in our country keeps steadily increasing, with 83% ofpeople now on social media and almost a million people joining for the first time last year.

As the market constantly changes and social media remains a crucial part of Australians’ digital diet, brands must embrace these shifts to strengthen their connection with their customers. Here are a few things marketers should be thinking about in 2023.

Search is social

We are experiencing a shift in how people explore the internet and discover new content. To help navigate a dense landscape of memes, trolls, merchants, and forums, people are leaning more on the wonders of user-led data on social media – whether to supplement traditional search engines, or replace them altogether.

Discovery journeys are beginning within the depths of Reddit, the sensory minefield of TikTok, or the far corners of Roblox – and these new launchpads are influencing what kind of information people are seeking out. In fact, TikTok has already overtaken Google as the brand search platform for teens. As Google confirmed, nearly 40% of people 18 to 24 are turning to visual-based social media platforms like TikTok or Instagram for their internet searches.

Deciding what to eat, what to watch, or where to go is becoming less about the utilitarian, and more about the immersive and unexpected. In this context, effectively guiding people around the internet means adapting to new modes of discovery – ones that are visual, collaborative, serendipitous, and alive with personality. Brands should look at ways to introduce an element of surprise into their content strategy, and tap into their communities to curate recommendations that their audience will seek out, engage with, save and share.

TikTok takes over

TikTok usage shows no sign of slowing down with 62.5% user growthYOY. As a platform, it’s rapidly becoming ground zero for the genesis of major cultural trends.

With so much time being spent on the platform, its captivating content goes way beyond pure entertainment, leading consumers down the funnel. TikTok has the highest percentage of frequent socia lshoppers on any social mediap latform: over 20% of users reported that they buy things on TikTok "all of the time," and 67% say they "feel inspired to shop" when using the platform, even when they didn't intend to do so. It’s no surprise that TikTok has become the highest-grossing app in theworld (including its Chinese version, Douyin), even as the overall market is seeing a slight decline.

It's no surprise that more than half of marketers (52%) who use TikTok plan to increase their investment this year, which is one of the sharpest increases of any platform. However, despite its staggering growth, the platform is still in its infancy in terms of ad products. Many brands have yet to embrace TikTok for owned or paid, leaving early movers to reap all the benefits. Brands should leverage the power of short-form video and experiment on TikTok, such as testing the waters with a paid campaign, investing in the creation of their own presence, or partnering with creators.

The democratisation - and monetisation - of creativity

The creator economy shows no signs of slowing down. In 2022, the global influencer market was valued at a record USD$16.4 billion, and it’s expected to reach USD$22.2 billion by 2025.

Last year provided many new ways for the individuals who make social platforms what they are, to monetise their work. Users can now tip their favourite artists on Tumblr, YouTube announced new options for creators to get paid more for their work, and Snapchat is experimenting with the idea of sharing ad revenue with creators. Various social platforms are experimenting with paid subscriptions, and newsletter services like Substack have grown in popularity among creators as they help build stronger relationships with their audiences. Creators are testing alternative monetisation streams to ‘pay-per-content’ deals, from consulting, to affiliate marketing. An impressive example is Flex Mami’s subscription-based, members-only platform ‘Future Group Chat’, a space for “intentional social networking” to create “genuine connections through organised conversation.”

Users find these new opportunities encouraging and appealing, to the point that, according to Instagram's 2023 trend analysis, nearly two-thirds of Gen Z plan to utilise social media to make money next year. This means more micro-influencers entering the arena, which brings more competition for people’s attention, but also more opportunities for brands to partner with them to leverage relevant trends and develop authentic content that will resonate with consumers, especially if raw and spontaneous.

What is undoubtedly clear is that social media is an ever-evolving landscape, and the possibilities for brands are endless. Tapping into innovation is a great way to stay ahead of the game, but it's important to be able to recognise which trends are here to stay and which ones are just passing fads.

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