Marketing Research Report Title: The Impact of Paid Social Media Advertising on E - Commerce Sales Performance 1. Research Objective This research investigates how paid advertising on social media platforms (media buying) influences e - commerce performance — with a focus on conversion rates, return on ad spend (ROAS), and consumer behaviour. It combines industry trends with original insi ghts from online shoppers and digital marketers. 2. Type of Marketing Research Conducted This study follows a mixed - method approach : • Secondary Research : Analysis of existing data, market reports, and case studies from recognized sources. • Primary Research : o Quantitative: An online survey conducted with e - commerce shoppers o Qualitative: In - depth interviews with e - commerce digital marketing professionals 3. Data Collection Methods a) Secondary Research Sourced from: • Meta Business Insights • HubSpot: State of Marketing • Statista: Global Digital Ad Trends 2024 • Shopify Plus Reports • Think with Google Topics covered: • Platform effectiveness (e.g., Instagram vs. TikTok) • Best - performing ad formats • ROAS benchmarks • Evolving consumer behaviours b) Primary Research 1. Online Survey • Target group: 50 respondents aged 18 – 40 • Qualification: Must have made an online purchase in the past 3 months • Key Questions Asked: o Have you ever purchased something after seeing a social media ad? o Which platform influences your buying decisions most? o What type of content makes you trust an ad more? 2. One - on - One Interviews • 3 interviews with digital marketers from mid - sized e - commerce brands • Key discussion points: o Preferred platforms for media buying and why o ROAS trends o Campaign challenges (e.g., ad fatigue, cost inflation) o Effective creative strategies used recently 4. Research Data Gathered A) From Secondary Research • Meta (Instagram + Facebook) delivers higher conversions, especially for retargeting. • TikTok dominates engagement but struggles with last - click attribution. • Video ads outperform static formats by 30 – 50% in CTR. • Personalized ads using customer data increase conversion rates by 25%+. • CPM costs have increased 19% YoY — forcing brands to optimize content quality and segmentation. B) From Primary Research Survey Results: • 76% of participants had made at least one purchase after seeing a social media ad. • Most influential platforms: o Instagram: 43% o TikTok: 28% o Facebook: 21% • 61% trust ads more if they include customer reviews or user - generated content. • 70% prefer video over static image ads. Interview Insights: • Marketers saw highest ROAS from Instagram Stories and Facebook Retargeting. • Ad fatigue and rising costs were the biggest challenges in Q1 2025. • All interviewees emphasized the power of continuous A/B testing and agile creative refresh cycles. • TikTok was seen as an “awareness engine” but not a direct sales driver (yet). 5. Data Analysis Findings: Insight Area Trend Identified Instagram & Facebook drive conversions; TikTok excels at brand Platform Effectiveness awareness Consumer Preferences Authentic, story - driven video ads are more trusted and engaging Media Buying Rising ad costs, creative burnout, and platform algorithm shifts Challenges Diversified ad mix, creative agility, and retargeting with Key Success Factors personalization 6. Research Outcomes & Conclusions Key Takeaways: • Paid social media advertising remains a critical growth lever for e - commerce brands — when used strategically. • Consumer expectations have evolved — trust, relatability, and content authenticity now drive performance more than production value. • Media buying success increasingly depends on a multi - platform, dynamic content strategy, supported by data - driven insights. Conclusion: To stay competitive, e - commerce brands must: • Diversify across platforms to balance awareness and conversion • Prioritize agile content strategies that feel personal and human • Continuously analyse ROAS and adjust targeting + creatives in real - time As platforms become more saturated and costs rise, the brands that treat media buying as a science and an art will win.