The algorithm change in social media marketing: challenges and opportunities for online retailers

Kim Kardashian with SKIMS, Shirin David with DirTea and Sally Özcan from SallysWelt - they have all created products and successfully marketed them online. The effect of social media and the reach generated by well-known influencers have become an integral part of today's media landscape. This makes it all the more important that the social media landscape is undergoing profound change: Algorithm-driven content is dominating popular platforms such as TikTok and Instagram, while traditional metrics such as follower numbers are becoming less important. For online retailers, this means that visibility on social media is no longer primarily a question of reach strategies, but rather a game with the algorithm. What is successful today may be irrelevant tomorrow. So what's the best way for you and your online store to deal with this? We have addressed this question in this article.

The new reality: flexibility and authenticity as success factors

According to the European E-Commerce Report by Mollie, around 32% of consumers use Instagram to discover products, get inspired or make purchases. At 38%, Facebook is the top dog and therefore remains the most popular platform, but TikTok is also one of the fastest growing platforms with just under 14% of all users. The reach is likely to be boosted by the planned launch of TikTok Shop will continue to grow in Germany in the future and attract even more interested users.

But regardless of the platform on which you sell your products or want to sell them in the future, predictable reach is now a thing of the past. Rather, they force dynamic trends online retailers to develop their marketing strategies for Social Commerce to fundamentally rethink and adapt. Your content needs to convince the algorithm in real time, be creative, elicit many reactions from users and fit in with current trending topics. Real-time trends and short-term adaptability are therefore more important than pure follower numbers, which is precisely why many creators are now focusing on quantity rather than quality - precisely in order to serve the algorithm.

At the same time, authenticity is also being redefined: What counts is how well your content responds to user behavior and is aligned with trends. This is another reason why online retailers are increasingly faced with the challenge of remaining relevant without losing credibility.

The first few seconds are crucial

The constantly changing algorithms, such as TikTok, lead to a perceived loss of control in reach strategies, as online retailers are now faced with the challenge of ensuring visibility and relevance in an unpredictable environment. The first few seconds of a (product) video are particularly critical: If they are not used optimally, influencers, retailers or companies risk being penalized by the platform. Their content is then only played to a limited extent and no longer generates the reach needed to establish a successful social media presence.

Data-driven success: what to look out for

Successful social media and influencer marketing requires a combined approach of trend monitoring and data-based analysis. Online retailers could, for example, use creators as trend scouts to identify new trends and successful content approaches. Social listening tools such as SocialHub, Hootsuite or Meltwater can also be used for this purpose, as they provide real-time insights into current trends and user behavior. The combination of trend analysis and technical tools can help you to develop strategies that meet the requirements of modern platforms.

Conclusion: Making the most of change

The change in the social media landscape requires online retailers to radically rethink their approach. If you want to remain relevant in the long term, you need to recognize trends early on, make content algorithm-friendly and appear authentic at the same time. Collaboration with creators and influencers can also offer real added value. Ultimately, online retailers who find the optimal fit between content and algorithm can not only master this change, but actively use it to their advantage.