Millennials and Gen X Growing Group Who Scroll to Shop; Live and Virtual Shopping Driving More Brand Purchases
NEW YORK, Sept. 24, 2024 /PRNewswire/ — As Gen Z and Millennials increasingly research and purchase products through social media as well through live and virtual shopping, gaming, and automated reality platforms, social shopping is set to outpace e-commerce, putting pressure on brands that face a collapsing consumer purchasing journey. How consumers are behaving and the implications for brands, social media platforms, and retail media outlets are the subject of The Rise of Social Shopping, released by Horizon Media today.
The findings from the WHY Group, Horizon Media’s intelligence center of excellence, and Night Market, Horizon’s commerce affiliate, demonstrate that social shopping is quickly replacing ecommerce. The results show that one in four people today are scrolling to shop. Among social shoppers, 80% say they make a purchase twice a month and 73% expect to purchase at least once a month in the upcoming year, with Millennials most likely to be frequent shoppers. Those not currently shopping on social are open and ready: 75% of Gen Z, 76% of Millennials and 61% of Gen X feel comfortable purchasing on social media. Marketers need to tap into these platforms to connect with customers where they are to drive additional revenue.
Beyond the Gen Z adopters, Millennials and Gen X are also quickly shifting online buying habits to social platforms including TikTok, Pinterest, Snapchat, Facebook, and Instagram. In addition to live shopping, gaming platforms such as Twitch and Roblox now connect brands to buyers.
More than half of products purchased through these platforms are brand name and purchases span categories – more than 40% include Apparel, Beauty, Electronics, and Personal Care. Impulse buys are big, including trending and seasonal products.
The market opportunity is large: Social commerce revenue is projected to reach $6.2 trillion globally by 2030 (Statista). Instagram, Facebook, YouTube and Tik Tok have already integrated shopping into their user experience and more brands are jumping in to generate revenue. More than 72% of social shoppers say they could replace at least some of their online shopping with social shopping.
However, the biggest hurdle to more widespread acceptance is scammers and the trustworthiness of online shopping. Brand verification is key and a large opportunity to generate sales. Marketers need to invest and promote safety in their brands. Once this happens, they will capture more market share.
“We are witnessing one of the most radical shifts in behavior we’ve seen since the adoption of ecommerce,” said George Musli, Chief Business Officer, Night Market. “Social shopping promises a dynamic, personalized experience that can shorten the marketing funnel and blur the boundaries between online and offline retail. Marketers need to capitalize on the platforms poised for growth. Today gaming experiences are already making an impact, especially among Millennials. Brands that jump in will be in a prime position to grow when uptake expands.”
The Rise of Social Shopping report includes the following key findings:
Social Shopping in Tik Tok, and Beyond
Despite reports that the introduction of Tik Tok Shop would spell the app’s demise, people disagree
Just 12% of social shoppers agree that social shopping on places like Tik Tok is making social media less fun, a figure matched by 13% of non-social shoppers
Beyond Tik Tok, there is significant opportunity across Meta properties and YouTube, especially with older cohorts
Facebook is not only one of the most used platforms but also the most trusted for social and non-social shoppers alike
Marketers can take advantage of introducing new products and promotions by targeting the more than 4 in 10 non-social shoppers that already see social media as a place to gather inspiration or research
Live streaming and virtual shopping are new commerce channels
Live shopping and virtual shopping are gaining traction, adding new dimensions to the experience
This shift in shopping behavior goes beyond Gen Z, with Millennials and even Gen X embracing new ways to purchase through social media, gaming experiences, AR, and VR
Among social shoppers 58% of Millennials have purchase form a livestream and would again, 56% of Gen X are open to trying. This extends to virtual shopping with 48% of Millennials planning to do this again, and 40% of Gen X open. These new avenues can bring incremental sales for marketers promoting their brands in new ways
Social Shopping Excels with Relational Buyers
Shoppers see social commerce as a way to support small businesses, foster community, and promote social good, while social shoppers further associate it with endorsements and personalized recommendations
Social shopping excels in creating connections in a way that traditional online shopping does not
Users are looking for inspiration (55% of the population, 60% of Gen Z). Marketers can help them discover a brand or product they didn’t even know they needed
Timing is Key for Purchases
Impulse buys are big including trending and seasonal products
Brands can encourage immediate buying with reminders to purchase and exclusive offers
Influencer partnerships, trending hashtags and seasonal products can also be instrumental in generating hype for products and services
Marketers can evaluate the content users are browsing and what products they are considering to purchase, and serve an ad that leads to a verified brand page (and contains some other enticements like free shipping) to drive sales
“Social shopping is now officially a part of the online ecosystem, tapping into community in a way that online does not,” Pam Wake, VP, Why Group. “Social offers a rich environment for brands to foster connections, build loyalty and consequently create unique shopping experiences that blur the boundaries between commerce and community. Marketers can tap into existing fandoms, subcultures and niche communities that are drawn together by shared values, norms, behaviors and identity makers.”
For more findings, as well as recommendations for how brands can translate these insights into action and engagement, access the full report at The Rise of Social Shopping.
Methodology:
We surveyed 1,008 adults 18-59 who use social media and shop online, including n=499 that are current social shoppers (purchasing via social commerce avenues including social media, gaming or AR/VR) and n=509 who are not.
The sample was balanced to the US general population by age, gender, region and income. Surveys were fielded between 4/30/2024 and 5/7/2024.
About Night Market
Night Market, which is part of Horizon, is a multi-service retail and commerce agency that helps clients maximize business performance, growth, and outcomes. We offer a comprehensive range of retail and commerce solutions designed to help ignite and accelerate growth across marketplaces, retail, DTC, and omnichannel. From media to creative, customer experience (CX), and digital transformation (DX), we combine the right mix of human and technical capabilities to design and deliver experiences across owned, leased, contextual, and experiential platforms that influence consumer perceptions and behavior and drive transactions. Founded in 2020 with a focus on being a business partner and a business driver as much, if not more, than an agency.
About Horizon Media
Horizon Media, the largest U.S. media agency delivers data-driven business outcomes for some of the most innovative and ambitious brands. Founded in 1989, headquartered in New York, and with offices in Los Angeles and Toronto, the company employs 2,400 people and has media investments of more than $8.5 billion. Horizon Media’s fundamental belief is that business is personal, which drives its approach to connecting brands with their customers and engaging with its own employees resulting in industry-leading workplace satisfaction levels (Glassdoor). The company is consistently recognized by independent media outlets for its client excellence and has earned several “Best Workplaces” awards reflecting its commitment to DEI and the life and well-being of everyone at Horizon Media.
View original content to download multimedia:https://www.prnewswire.com/news-releases/horizon-media-study-finds-that-social-shopping-is-quickly-replacing-ecommerce-302257014.html
SOURCE Horizon Media
Coin Market5 days ago
Technology4 days ago
Near Videos4 days ago
Technology2 days ago
Technology2 days ago
Coin Market5 days ago