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Is Social Commerce the Future of Facebook and Instagram Ads?

Is Social Commerce the Future of Facebook and Instagram Ads?

Social commerce refers to the direct buying and selling of products within social media platforms, without users ever leaving the app. It blends content, community, and commerce — allowing brands to showcase, promote, and sell in one seamless experience.

Line chart showing global social commerce market growth from 2020 to 2025 in trillions of dollars

The rise in global social commerce market size from 2020 to 2025 (in USD trillions)

On Facebook and Instagram, this includes features like:

  • Instagram Shops and Facebook Shops — customizable storefronts.

  • Shoppable posts and stories — tags linking products to purchases.

  • Live shopping — creators or brands showcasing products in real-time.

According to eMarketer, global social commerce sales surpassed $700 billion in 2024, and this number is expected to reach $1.2 trillion by 2027. Meta’s platforms account for a significant share of that growth.

Why Social Commerce Matters for Advertisers

Social commerce fundamentally changes the customer journey. Instead of running awareness ads that drive users to external websites, brands can now complete the entire funnel inside Facebook and Instagram.

1. Shorter Conversion Paths
By removing extra steps, like leaving the app to check out, advertisers see higher conversion rates. Meta reports that in-app checkout reduces drop-off rates by up to 20% compared to external website flows.

2. Better Attribution and Optimization
Because transactions occur within Meta’s ecosystem, tracking is more accurate. This improves ad optimization and allows for better budget allocation across campaigns.

3. Seamless Integration With UGC and Creators
Influencers and user-generated content (UGC) become direct sales tools. Creators can tag products in their posts, turning engagement into measurable sales almost instantly.

How Facebook and Instagram Are Driving the Shift

Meta is investing heavily in social commerce tools. Instagram’s algorithm increasingly prioritizes shoppable and video content, while Facebook focuses on live shopping and community-based purchasing.

Bar chart showing percent of US users making purchases via TikTok, Facebook, and Instagram in 2024

Percentage of US users who make purchases via TikTok, Facebook, and Instagram in 2024

In 2024, Instagram expanded its Checkout feature to more countries and integrated it with Meta Pay, making transactions smoother. Meanwhile, Facebook Groups with niche interests — like beauty, fitness, or gaming — are turning into mini-marketplaces where ads and social proof blend naturally.

For businesses, these updates mean more control and efficiency. Instead of managing separate e-commerce sites and ad funnels, they can centralize everything in one place.

How Brands Can Leverage Social Commerce

If you’re running Facebook or Instagram ads, adopting social commerce strategies can help future-proof your campaigns. Here’s how:

  • Build a Facebook or Instagram Shop. Even if you already sell on Shopify or WooCommerce, integrating your catalog into Meta’s platform enhances discoverability.

  • Use Shoppable Ads. Tag products directly in image or video ads to shorten the path to purchase.

  • Experiment With Live Shopping. Host product demos or Q&A sessions to build engagement and authenticity.

  • Leverage Influencers and UGC. Combine creator content with shoppable features for social proof and higher trust.

Brands that integrate social commerce early often see higher ROI from their ad spend due to improved engagement and reduced friction.

Key Statistics to Watch

  • 81% of shoppers discover new products through social media (Meta internal data, 2024).

  • 60% of Gen Z users say they prefer buying directly through social platforms rather than external sites (HubSpot, 2024).

  • Facebook and Instagram drive over 40% of all social commerce transactions globally, according to Statista.

These numbers confirm what advertisers already suspect — the lines between content, community, and commerce are disappearing fast.

The Future of Social Commerce on Meta Platforms

The next few years will likely see Meta turning its platforms into fully integrated shopping destinations. With advancements in AI-driven recommendations, visual search, and augmented reality (AR) try-ons, users will discover, evaluate, and buy products faster than ever.

For advertisers, the challenge will be balancing authenticity with promotion. The brands that succeed will use social commerce not just to sell, but to build relationships that feel organic and personalized.

Final Thoughts

Social commerce isn’t replacing traditional advertising — it’s redefining it. Facebook and Instagram are no longer just ad platforms; they’re becoming digital malls where discovery and conversion happen side by side. As user behavior continues to shift toward in-app shopping, the advertisers who adapt early will hold the advantage.

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