You don't have to be a retail giant to leverage the benefits of social media advertising, an industry that's forecast to reach $276.7 billion this year. 

"Retail media is expected to remain one of the fastest-growing segments of the media ecosystem," says a report by Emarketer, which says advertisers will spend more than $62 billion on retail media in 2025, an increase of more than $10 billion. 

U.S. social media advertising will increase by 88.5 percent from 2024 to 2030, according to the article by Max Willens, a senior analyst for Emarketer.

If you're a small business in the retail sector, here's a quick look at how social media ads could help attract new customers and sales.

Why Pay? 

Social media is a key piece of every company's marketing strategy but perhaps even more critical for retail businesses. After all, it's where consumers shop, where they hear about the latest products and services.

Ninety percent of consumers rely on social media to keep up with trends and cultural moments, according to a research report this year by Sprout Social.

Social media ads are the leading source of brand awareness among internet users aged 16 to 34, says the 2025 Sprout Social Index. Instagram is the top channel for product discovery, it says, with 61 percent saying they use it to find their next purchase, while TikTok ranks highest for product discovery for Gen Z users.

'Organic’ vs. 'Paid’ on Social

The difference between organic social media and social ads of course is the money. One is free to post, the other comes with a price tag.

However, while the value of organic content is undeniable for small businesses, marketing experts say it's imperative for retailers to consider adding social advertising to their toolbox.

"If organic social is a marathon, then paid social is a sprint," says a Sprout Social blog by senior content strategist Ronnie Gomez.

"A single, well-targeted campaign can bring a ton of new fans to your social profiles. It's an ideal trick to have in your back pocket if you notice organic social media growth stalling."

Guaranteed Viewing

A social ad isn't tied to the whims of a platform's algorithms, which can limit who and how many people actually see what you're posting.

With paid social, you have a guarantee that at least some people, including those who don't follow your business on social, will see your content.

"Running social ads allows you to go beyond the confines of an algorithm to reach your target audience," writes Sprout Social's Gomez. "Rather than get buried beneath competing content, ads put your stuff front and center in people's feeds."

Hyper-Focused Targeting

With social media ads, small retailers, like any business, have the opportunity to put their posts in front of specific audiences.

For example, you could use parameters that include prospects and leads who have visited your website and/or customers who've purchased from your business before. Social media platforms  have access to user data such as location, age, income, gender, interests, engagement patterns and online behavior to create targeted audiences.

"The good news is that retailers can personalize and target their advertising like never before," explains Sprout Social in a blog. "Brands can run campaigns to prospect for new customers or reach out to returning customers simultaneously."

Types of Paid Social

One of the easiest, and some say more affordable, paths to expanding the audience for your posts is the "boost” option on Facebook, Instagram, and LinkedIn. On TikTok, it's labeled “promote." 

Minimum costs to boost your post, which then appears as ads in the feeds of your followers, include $1 a day on Facebook to $3 a day for TikTok.

Generally, social media ads are static images, videos, carousel content, and stories — basically the same formats as organic content. 

A static image ad, which can offer a lower cost, is often used by small retailers to highlight a specific product, sale or offer on any of the platforms.

A carousel, which uses multiple photos or videos that users can swipe through, performs well organically on Instagram, according to Sprout Social. 

"Slideshows provide an opportunity to show off multiple products from multiple angles," says a post by the social media management and analytics company. 

"This provides shoppers with a complete view of what you're offering. With carousels, a single ad can appeal to different types of customers at the same time."

Ads that run as a story are notable, explains a Sprout Social blog, because they run along side with non-ad stories. "Anything you can do to serve ads without interrupting potential customers is a plus."

For more ideas on running a successful retail business, check out this blog.