Does social media influence purchase behaviour? DMA director of insight, Tim Bond, discusses why social is much more than just a platform to get your customers’ attention.
After the pandemic hit, both customers and brands were required to quickly adapt and learn how to interact in an increasingly digital space with new rules. However, with the gradual lifting of restrictions, stores started to re-welcome people with a sense of urgency to integrate the digital universe into customers’ real-life experiences and vice versa.
Therefore, now that we live in this hybrid world, what does ‘influence’ look like? How do the nudges customers receive from the digital universe influence their behaviour?
How generational cohorts use social
Social media has fast become an omnipresent part of consumers’ lives, with many more customers increasingly engaging with one or more of these platforms every day. Foresight Factory’s forecast sees the overall number of social media users continuing to increase, despite the number of customers engaging with specific platforms fluctuating.
Different age groups interact differently with their social media, but most customers are getting more familiar with these platforms and integrating them across different moments in a purchase journey.
Indeed, while social media penetration was near saturation among younger consumers aged 16-34, the pandemic has brought an unprecedented rise among older consumers too.
Customers who have used social networking sites in the last six months
Foresight Factory’s data shows Facebook was the most popular social channel among UK consumers in 2021, used by seven in 10 consumers on average. The social network was rated as the top channel among Gen X (74%) and Baby Boomers (62%) in particular.
YouTube was the most-used channel among Millennials (84%) and Gen Z (91%).
TikTok became increasingly popular amid the pandemic, especially among Gen Z (63%). But data shows a 17% uptake of the video platform across the general public too – from just 2% in 2019 to 19% in 2021.
Younger consumers are also highly familiar with Snapchat, with 77% of Gen Z using it in 2021, compared with just 20% of the total UK population.
So, what role do these platforms play when influencing customers and their purchasing decisions? What’s the outcome of brands’ investment in their digital channel strategy?
Nearly a third (29%) of consumers said the adverts they find on social media are more interesting than those they see elsewhere – a statement that resonated with more than half of the young respondents aged 14-24 (52%) and 25-34 (54%).
Even among the 56-64 age group, the number who find social media adverts effective has increased in the last two years – doubling from 6% in 2019 to 12% in 2021.
Within the DMA’s Acquisition and the Consumer Mindset 2021 report, we explored the role played by a few digital channels when it comes to brand discovery. Three of the areas that were investigated included social media, Google Ad search, and podcasts.
Two out of five customers (40%) mentioned they have discovered new brands through social media adverts – an increase that has also been observed in older customers too in the last year. In particular, customers with a higher yearly income (£75,000+) have defined social media platforms as a great way to discover new businesses.
Brand discovery via digital channels
As the data shows, social media platforms are powerful in attracting consumers’ attention – but their interest isn’t enough, trust issues need to be resolved in order to maximise its efficacy.
Online shopping integrating with social
Today, social media are not only platforms where consumers can catch up on the latest news and stay up-to-date with their friends’ lives, but also offer ways to discover and buy products – all within a single feed. Facebook, Instagram and Pinterest are well-known examples, but Twitter and TikTok are also experimenting with shoppable content.
Shopping is becoming more integrated into our daily lives and social media is an effective touchpoint where consumers can discover new brands. It can feel more organic and authentic than other forms of retail, as social media shopping satisfies consumers’ desire to seek out personalised experiences.
Consumers buying directly through social media
As the chart shows, buying through a social media platform is an emerging behaviour. In 2021, 24% of UK consumers said they had bought something directly through a social media site, compared to 15% in 2017. Uptake is slightly higher among women (26%) than men (22%) and younger customers – likely due to social media usage being generally higher among younger consumers.
The increased amount of time people spent on these platforms during the pandemic is a key factor that boosted the transformation of social media into e-commerce. Indeed, in March 2021, 33% of UK consumers said they were planning to shop online more in the following 12 months compared to pre-pandemic. 56% said they would have kept doing the same amount of online shopping.
By 2030, Foresight Factory predicts 35% of the UK population could be buying directly from social media, and a further 16% interested in doing so.
Live shopping, already popular in Asia and EMEA, may also be the next step for social commerce. It offers brands opportunities to create that sense of urgency while also letting consumers purchase directly from streams.
Find the right platform and tailor your message
As discussed earlier, social and digital channel usage varies significantly among demographics. Therefore, it’s key to pinpoint which channels your audience uses most. Then also understand the media that are growing fastest among these key audiences and build a presence before these platforms become saturated.
Furthermore, content analysis is fundamental as different channels suit different kinds of content. For example, TikTok content often joins genres and cultural cues to create new meaning, while Instagram is used as a space where consumers share content to paint their lives in a positive light and strive for perfection.
Streaming platforms, like Twitch, look to popular games and gamers as a source of inspiration to keep audiences engaged, especially in recent years where gaming has become a key channel for brands across most sectors (as discussed in another DMA article).
Furthermore, being aware of the trends on different social platforms is key, as well as being responsive to customers’ needs and interests as they evolve.
Becoming more transparent and influential
The pandemic has only increased consumer demand for reliable information. Despite regular updates offered by centralised information resources, consumers often look to other sources, including social media and their family/friends. Hence the pressure on social media platforms to prevent and avoid misinformation being spread – especially given the high presence of news and conspiracy theories online.
In addition, there are many tools customers can use to find an answer in their quest for truth. Indeed, only in 2018, 31% of UK consumers had used a fact-checking website, up from 18% in 2017. Not everyone will be keen to know about a product’s backstory, but many will ask for further insights to be able to make informed comparisons between products and services. For instance, provenance, efficacy, corporate social responsibility – all could become as important to some customers as price.
Social media presents unique opportunities for brands to communicate their offerings in a personalised way and, ultimately, to a highly engaged audience.
Businesses must understand their target audience’s profile and their needs in order to differentiate from competitors. Social media’s usage, engagement, and audience is only increasing, so it is up to organisations to become more influential by showcasing the right opportunities, with the right message, on the most relevant platform.
