Spark Foundry’s Insight Accelerated report finds that VR enthusiasm soars, live shopping is growing, and sustainability tops searches in Q1 2023

Spark Foundry, the UK Acceleration agency, outlines Q1 2023 trends in its latest insights report looking at Social Commerce, Sustainability and Gaming.

Key stats are:

  • Positive sentiment surrounding VR is up 60% since the previous quarter (Q4 2022)
  • For the first time, weekend chatter about AR and particularly VR is outpacing weekday conversations
  • Instagram is now the leading social commerce platform, as 43% of users have made a purchase in the last three months, compared to 39% on Facebook
  • Between December and January, searches for sustainable options in the transport category surged by 37%
  • Findings in Q1 2023 showed that search interest in sustainable food and drink options increased since December, with relevant searches up 15% as people began the annual ritual of self-improvement. 

Using Social Sparks (social listening), Intent-Based Planning (semantic analysis) and The Street (external panel), Spark Foundry’s ‘Insights Accelerated’ report looks at the trends in consumer spending and search habits when it comes to these areas. This fourth iteration looks at trends from Q1: January – March 2023. 

Social Commerce 

Social shopping has grown up as a retail channel that is here to stay, and despite plateauing in Q1, penetration has stayed steady despite moving from the busiest retail quarter to the quietest. Other key Social Commerce findings are:

  • Meta platform Facebook has long been the leading platform for social commerce in the UK. However, the big news this quarter is that Instagram is now the engine of social commerce growth: 43% of users purchased on Instagram in the last three months compared to 39% on Facebook
  • Live shopping on social platforms was the big trend of Q4 2022, with almost one in three saying that they had participated. 
  • This figure has slipped 3% in the most recent quarter, with fewer buying live. 
  • However, the real headline here is the growing opportunity amongst the mainstream: 13% of those who have not shopped live now say they’d be likely or very likely to buy an item through live streams in future

So what? Marcos Angelides, Chief Strategy & Innovation Officer at Spark Foundry UK comments: “The nuance for brands is no longer a question of whether to sell socially, but on which social platform they should start selling. The remarkable seasonal stability, against a tough economic and retail backdrop, solidifies a new view of social commerce. Consumers go to the platforms which best reward visual experiences. Brands should consider which platforms will deliver the richest experiences for their product and category. 

“With consideration to shop live growing amongst mainstream shoppers, brands should sync their live shop planning with their Christmas plans. Rewarding and relevant live streaming experiences take time to develop, with Q4 being the big opportunity, brands would do well to start preparing now.”

Gaming and Tech 

The key findings around the gaming and tech conversation showed that interest in VR soars, with data showing a positive sentiment surrounding VR up 60% since Q4 2022 and for the first time, weekend chatter about AR and VR is outpacing weekday conversations. Other key findings are:

  • Sunday afternoons have witnessed a nearly four-fold surge in discussions since Q4 2022, as users exchange experiences
  • Creative users passionate about arts and design are 256% more likely to engage with VR or AR than the average UK adult. Additionally, fashion (237% more likely) and health (60% more likely) enthusiasts are joining the fray, with more interests expected to follow

So what? Marcos comments: “Brands should consider dipping their toes into mainstream VR gaming environments. The largest VR platforms are in games so brands should use this as an addition to their existing gaming strategy. Brands can start by simply adapting OOH ads to run in virtual OOH spaces. 

“Brands can also look to maximise audience engagement and positive sentiment by concentrating on weekend evenings for brand activations. To craft truly immersive activations, contemplate how your brand can capture these moments and cater to the audience’s fervour.”

Sustainability  

Findings in Q1 2023 showed that search interest in sustainable food and drink options increased since December, with relevant searches up 15% as people began the annual ritual of self-improvement. 

Other key sustainability findings include:

  • search interest in sustainable fashion fell by almost half (49%). Whilst that is a precipitous decline, there were still well over 140 million relevant category searches during this time showing that sustainable fashion is still worth our attention.
  • Search interest in sustainable food and drink options increased since December, with relevant searches up 15% as people began the annual ritual of self-improvement 
  • Of these searches, most were driven by people seeking ‘plant-based’ alternatives (59%), which have health-beneficial and environmental associations
  • The retailer most associated with sustainable options in our data was one of the leading discounters (Aldi), which commanded 36% of retail related search
  • Most searches represent consumers in the ‘mid-funnel’, exploring product types and specific brands with 35% of searches coming from people looking at certain products, and 55% representing people delving into specific brands. 
  • Brands commanding significant attention from consumers include Asket and Frame.
  • Between December and January, searches for sustainable options in the transport category surged by 37%
  • The share of search being driven by cars, rather than bikes or scooters, increased by 10%pts, from 56% to 66%. Most auto-related searches continue to be brand focused, accounting for 59% of the funnel in this category
  • However, Tesla’s share of search jumped 67% to 8.2%, placing it third in the category, behind Audi and BMW.

So what? Marcos comments: As consumers seek to balance health, sustainability and cost pressures, sustainable food brands who can present their products as a cost-saving versus less sustainable options may well win out. This trend may also point to the benefit of tactical price promotions to nudge people towards trialling sustainable alternatives.

“Whilst shopping may be down in Q4, the strong interest in specific sustainable brands shows us that a growing number of consumers place sustainability high up their checklist when shopping for clothes. Whether your brand has sustainability at its core or not, there is merit in bringing sustainable features to the fore in communications – that could be references to local production, organic materials, or simply quality that counters fast fashion.”

Source: Spark Foundry UK

You must be logged in to post a comment Login