Consumer purchasing behavior is evolving at a rapid pace, driven largely by social media trends. Platforms like Instagram, TikTok, and YouTube have become not only entertainment hubs but also major influencers of buying decisions, especially among younger consumers. For brands looking to stay relevant, understanding how social shopping trends affect purchasing behaviors is crucial. With Gen Z and Millennials increasingly relying on online reviews, influencer endorsements, and seamless shopping experiences, the power of social media can make or break a brand’s success.
Brands that fail to adapt to these shifting dynamics risk losing out to competitors who are quicker to embrace the social shopping revolution. Gen Z, in particular, is a generation that values authenticity, instant gratification, and community engagement. They expect brands to not only have a presence online but to actively participate in the conversations and trends shaping their world.
Our recent survey of US consumers explores how social media impacts purchasing behaviors and offers insights to brands on how they can meet customers where they are.
How Do Consumers Find New Brands?
Word of mouth is still king. Most (54%) consumers learn about new brands or products from their friends or family members. Recommendations in the online space are also taking off as a discovery method; nearly half (46%) of consumers say they learn about new brands from social media posts.
Gen Z (59%) and Millennials (56%) are more likely than older generations to learn about new brands or products on social media. Notably, Gen Z is the only generation more likely to learn about a brand on social media than from a friend or family member.
Brands who are not using social media and staying up to date on social trends are going to fall behind as Gen Z’s purchasing power increases. The International Council of Shopping Centers found that 85% of Gen Z consumers assert that social media influences their purchasing choices, underscoring the importance of brands finding innovative ways to engage with their younger audiences on social platforms.
How Are Consumers Using Social Media to Learn About Brands?
Three-quarters (74%) of consumers use social media in some way to learn about new brands or products. The top ways they use it are:
- Reading comments about products or brands: 41%
- Following brands: 27%
- Watching unboxing or review videos: 21%
- Researching brand’s values: 19%
- Following influencers: 17%
- Engaging with sponsored content: 16%
Unsurprisingly, Gen Z consumers are more likely than older consumers to engage in the above behaviors on social to learn about brands.
Fostering opportunities for user-generated content is one cutting-edge way that brands can build relationships with their audience and develop relatable, interactive content. Influencer partnerships are also key in building awareness of and community around your brand. It is crucial to collaborate with influencers who genuinely align with your brand values. Younger consumers can quickly spot inauthentic content, which can leave a negative impression on both the brand and the influencer.
According to Forbes, Gen Z values transparency, sustainability, and brands that champion inclusivity. To stay ahead, brands must tap into these preferences when creating social content, aligning with their values and embracing the trends that matter most to this influential generation.
Are Consumers Making Purchases on Social Platforms?
About half (47%) of consumers have purchased an item directly on a social platform in the past 6 months. The most common platforms consumers are purchasing on are Facebook (29%) and YouTube (24%).
Gen Z, however, shows different purchasing habits. Three-quarters (76%) have recently purchased an item directly on a social platform, most commonly on TikTok (45%), Instagram (39%), or YouTube (39%).
Southwest Airlines is a good example of a brand that is meeting Gen Z consumers where they are. They recently launched a new campaign that enables TikTok users to book flights directly within the app. The brand is partnering with content creators to highlight dream travel destinations that viewers can easily book with a new “book now” button.
Southwest’s campaign taps into another consumer shopping trend as well – shoppable video. For example, a recent study from Mintel found that nearly half (46%) of US consumers have purchased an item through a livestream and would do so again in the future.
Wrap Up
Brands that underestimate the power of social shopping are destined to fall behind. Gen Z’s habits offer a glimpse into the future, and to stay relevant, brands need to invest in authentic influencer partnerships, engaging social media strategies, and interactive content.
Methodology
This Research Roundup feature is brought to you by our market research division within TEAM LEWIS.
TEAM LEWIS surveyed 1,000 individuals aged 18 and older across the United States. The sample was census-balanced across age, race, gender, and region. Responses were collected in an online survey platform from February 26 to March 1, 2024. The respondents were independently sourced from Paradigm Sample.
For more information on upcoming trends, insights in the industry, and how we can help, contact us today by emailing [email protected].
