Social Media &

E-Commerce
Meet Team G
Xikhongelo Nathan Josh Report Focus:

Different Company’s
Algorithms
Social media algorithms
impact on consumer
behaviour:
Ethical considerations -
Benjam Dylan
Zakwan Data privacy &
algorithmic targeting.
Future trends in E-
Commerce

Subheading
OVERVIEW OF DIFFERENT COMPANY’S ALGORITHMS:

Facebook & Instagram X (Twitter)

Emphasize relevance
Prioritise posts
Analyse user engagement
Track interactions
Prioritize content for users
Consider post recency, format and popularity

TikTok 1. Ranking Signals 2. Goals

“For You” page 1. Alignment with users interests

Guide algorithms with user interactions Consider engagement patterns

2. Maximise user engagement

Tailor content for personal feed
PRODUCT DISCOVERY & RECOMMENDATIONS
Main Idea
Product discovery algorithms +
recommendation algorithm
= Help users find relevant items
Content-based filtering
Analyse product attributes
Recommend on past interactions and
facilitate product discovery
Faciliatate product discovery
Collaborate filtering
Recommends based on user opinion
Identify users with similar preferences
Known as Neighbors
Once neighborhood is found:
Social Media Algorithms can
recommend products
 PURCHASING DECISION ALGORITHMS:

Behavioural Targeting Algorithms

Main
Main Idea
Idea
Analyse user interactions
Identify signals showing purchase intent To
Topersonalised
personalisedshopping
shopping
Encourage
Encouragepurchases
purchases
Dynamic adjustment of recommendations
Influence purchasing decisions

Dynamic Pricing Algorithms

Adjust product prices in real-time
based on demand
Optimize pricing strategies to create
incentivized purchases
Temu Case Study
Rapidly growing e-Commerce
store
Prioritize customer needs by
analysing user behaviour
PERSONALIZATION AND TARGETING:

Social Media Algorithms utilize vast user data to:

Enables precise audience targeting
Personalized recommendations

Targeted Advertising:

Important to e-Com campaigns

Creates brand awareness
Shapes consumr perception
Helps businesses create naritives for customers
Streamlines marketing processes
 ALGORITHMIC BIAS AND FILTER BUBBLE:
Filter Bubble:
Main Idea
Internet filter exposure based on
Personalization can lead to
user preferences information determinism
Takes away loberty of identity This brings up ethical
concerns
and choice

Targeted Advertising:
Ads based on demographics
Stem from stereotypes, raise
ethical concerns

Impact on e-Commerce
Restricts exposure to broader marketplace
Lures customers with desire for familiar
things
ETHICAL CONSIDERATIONS

Privacy Concerns: User Concent: Why address Ethical

considerations:
Targeted ads rely on Unethical to have no
Foster trust
personal data conscent to gain usser data
Build long-term relationship
Concerns regarding data Must be easy opt-out
Compliance with the law and
breaches and improper options for data collection
consumer expectations
handling of data Enhance trust through
transparency
Perception of
Surveillance Human oversight
Algotihms using targeting
can cause bias Prevent inappropriate ad
Solved by continously placements or content
auditing data misidentification
Human oversight necassary
 FUTURE TRENDS IN ECOMMERCE

What we’ve seen! Mass adaptation of AI Emergence of

products:
Explosion of ECommerce in SA
during Covid
66% growth in 2020
Competitive Advantage Ads
omnichannel marketing:
Integration of all physical and
Utilizing AI for analysing
online channels
user information, behaviour,
Consistent user experience
past purchases
across channels
10-15% upliftment in profits,
Meeting users' preferred
better user retention with
purchasing methods
personalized marketing and
Targeting users on social
AI analysis on social media
media based on their online
behavior

Effeciveness: 60-70% of customers research and shop both

online and in-store, resulting in 1.7 times more
purchases with omnichannel marketing
Social Networks and High-Tech Algorithms:
Greatly influence e-Commerce success
Provide consumers with personal content
Shape consumer behaviour

Privacy and Bias Concerns:

Raise questions about privacy and potential bias
Constantly addressing these concerns to enhance
integration of social networks into e-Commerce

Ongoing Technological Development

Continuously improve algorithms for better user
experience
Thank you!
ANY
Q UE
S T IO N
S?