Under the Influence: How Social Media Pulls on Our Spending Habits?

Social media has made its way into most personal aspects of our lives. Like it or not is a phenomenon that doesn’t seem to cease anytime soon. That’s how most of us make friends, meet someone special, and even build career networks. 

Social media is nothing more than a digital portfolio of our public and personal selves, and certainly, most of us want to prove our best online. This makes you wonder – how do I influence others, and how do others influence me on social media? 

More than a third of U.S citizens confessed that social media (mainly platforms like Facebook, Twitter and Instagram) have influenced their buying preferences and that they overspend in order to keep up with those around them. On the other hand, 64% of Americans are still marvelled by their friends’ trends and luxurious vacations they’re sharing on Facebook.   

The number of online shoppers peaked since the start of quarantine in America. Most recent surveys found that 40% of buyers have increased their online spending to some level. 

Food is among the most popular items bought online, and 31% of U.S citizens say they’ve ordered take-out. Hygiene products come next as the most popular items online, followed by fashion stores at 26%. 

This throbbing need of keeping up with” Kardashians” and performing on Instagram is the gist of many poor online shopping decisions and can negatively affect your bank account. You won’t feel bad if you toss $30 on a concert ticket, yet this can add to that lavishness that will affect your savings plans and imbalance your budget sooner or later. 

Accessories and Clothing Have the Most Impact

Online fashion stores remain the top influencer among gender and age groups. For instance, we’ve found that gen X women are the most interested in fashion with 38% purchasing accessories and clothing they found on Instagram or Facebook. Men weren’t that interested in fashion, while Baby Boomers and Gen Z seemed to be the least interested, with 14% males from each generation purchasing trends from social platforms. 

Today’s fashion industry leads through the ability to control messaging and capitalize on accessibility through numerous visual apps. A successful case is Instagram’s 847+ million posts under the #fashion, thanks to 42% of influencers who are continuously shopping through the platform. This cycle is likely to reach 86% as increasingly more influencers shop clothes they’ve seen their influencers wear. 

Social Media Influence 71% of Consumer Buying Decisions  

Lockdown has produced many changes in the way how purchases are made online nowadays. With tech corporations developing more ways to mix digital space and shopping and the number of online users booming, online shops are expected to grow considerably.

According to a survey, 54% of social media users use platforms like Facebook, Instagram or Pinterest to research their products, with 71% of them likely to buy services and products based on Instagram referrals. Who didn’t make a buying decision based on what they saw on Instagram feed at least once? No matter if that’s a shared post from your friend or an extremely seductive ad, you surely did purchase something based on social media referrals.

How Does Social Proof Influence Us?

Definitely, social proof isn’t something that appeared yesterday. We are social animals, and we’ve been giving each other recommendations for decades. However, these recommendations and anti-recommendations can be heard/ seen by everyone.

Every time someone posts or tweets about this outstanding product, by that new a vegan shampoo or coffee, your Facebook followers see it and might be convinced to try it as well. A Forbes survey states that 81% of shoppers’ buying habits are influenced by their friends’ sharing on social media.

How Influencers Impact Our Shopping Decisions?

Influencers are people too. But more importantly, they’re social media users with a steady audience that regularly share the same interests. Their interests are normally seen by a bigger number of users, users that trust them. More surveys show that nearly 50% of Twitter users have made a buying decision as a direct result of an influencer’s Tweet.

But clothes, food and accessories aren’t the only things people are looking for on the internet. According to Insuranks, 64% of drivers shop for car insurance are at least once every 2 years. Influencers make sure they’re especially effective in persuading users as they are usually experts in some specific topics and niche, which makes them a credible source of recommendation for many topics.

For instance, if you’re opening a business, hiring social media influencers who specialize in your niche – be it a vlogger, a renown Instagrammer, or a Facebook group admin – a smart way to reach your audience.  

How about Millennials and Gen Z? Well, they are more likely to be influenced, with 84% of millennials saying user-generated contents from influencers have at least some influences on their buying habits.

YouTube & Facebook: All-time High Among U.S Adults 

Increasingly more internauts are looking up product and services reviews on YouTube. Remember that that 80% of users who said they watched a YouTube video linked to an item they want to purchase said that they did so before purchasing the product.

Apparently, the data on our daily purchasing decisions proves that it’s difficult to argue that social media platforms influence our buying behaviour. This influence can be explained by several factors: the accessibility of online shopping platforms, social proof, and the penetration of social media. At the moment, social media trends are here to stay, and online retailers are taking advantage of influencer marketing’s uniqueness. Nearly a third of the U.S citizens admitted they spend more than they can afford to maintain a social stigma, and social media envy seems to play a critical role in this influence.

To sum it up, the smartest way to become more financially secure is to plan a budget and stick to budget-savings apps to better manage your money and combat impulse shops.

This entry was posted in Uncategorized. Bookmark the permalink. Post a comment

Post a Comment

You must be logged in to post a comment.

  • Categories

  • Archives

  • Latest from Twitter