Evaluating the Influence of Social Media Advertising on E-commerce Sales

Abstract

Social media has become a value-adding marketing channel. With the significance of social media for online small businesses and the lack of understanding of this area, this study attempts to investigate the impact of social media marketing on the sales performance of such business. This research analysis the marketing through social media and its impact in E-Commerce sales. The digital revolution has ushered in an era where e-commerce plays a pivotal role in shaping business landscapes. Social media platforms have emerged as indispensable tools for e-commerce promotion, with social media advertising witnessing remarkable growth. This research investigates the empirical and theoretical underpinnings of the impact of social media advertising on e-commerce sales. By reviewing literature, analyzing data, and presenting case studies, this study aims to offer insights for companies and marketers aiming to enhance e-commerce effectiveness and optimize social media advertising strategies. The research delves into various aspects including the growth of e-commerce and social media advertising, mechanisms of attraction, the role of social proof and trust, consumer decision-making behavior, ad types and content, challenges with measurement and attribution, types of social media advertising, platforms, and target audience, metrics for measuring, e-commerce sales performance, factors influencing e-commerce sales, the correlation between advertising and sales, factors moderating the relationship, challenges, best practices, future trends, and conclusions. It also discusses implications for e-commerce businesses, research limitations, and future directions, highlighting the need for longitudinal studies, cross-cultural analysis, and experimentation to understand the complex dynamics of social commerce's impact on e-commerce sales comprehensively.