How exactly is social media changing the way we shop? Surprise, surprise, the January report, called “The State of Creator-Guided Shopping,” shows that, as Gen Z increasingly takes its shopping cues from social media, video content is driving more sales growth than static content, and creators and marketers are leaning into the format.
The report is a 33-page study which includes findings from a December 2022 online survey of 1,018 people in the US that LTK conducted and analysed by generation and household income, as well as from LTK’s own work with brands, creators, and shoppers on its platform. For reference, LTK is a platform where users can create their own personalised shopping feeds by following creators who will recommend products to them.
According to Ally Anderson, director of strategy and insights for LTK’s brand partnerships, the power influencers hold over consumption will only increase. “The larger thread that’s woven throughout all of these larger and robust topics is that creators should be and will continue to be a pillar for brands and retailers,” Anderson told Insider.
Furthermore, video continues to champion as the study found that video content drove three times the year-over-year growth in gross merchandise value — a measure of total sales — as static content. The survey also found that 66% of respondents preferred to watch videos over viewing still images, and that 57% watched influencer videos on social media.
Additionally, the statistics regarding Gen Z’s relationship with online shopping are a spellbinding majority with 100% of Gen Z admitting to shopping online! Of that 100%, 79% of the generation has used social media to shop at some point — including looking to creators and their content for inspiration, recommendations, and deals. The most influential social media platform for digital shopping is Instagram with TikTok and YouTube following closely behind.
It should be noted, however, that in person purposes should not be discredited. According to the study, 44% of millennials and equally 44% of Gen Z respondents said they had gone to stores to buy creator-recommended products. This only stresses the power of influencer marketing. To further drive that point home, Gen Z and millenials ranked influencer imagery, followed by brand imagery and then user generated imagery, as the most compelling when making a purchasing decision.
Another piece of information that doesn’t come as a shock, especially when we consider the TikTok vs Google search bar wars among Gen Z, is that Gen Z and millennials rank TikTok and Instagram higher than brand websites for searching for product information or recommendations, according to the survey.
Overall, brands should continue researching and exercising strategies to engage younger audiences on social media, particularly via influencer marketing.
