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August 28, 2024
Why Is Social Media Driving Gen Z’s Gift Discovery?
A number of recent surveys confirm that social media has become the go-to place for Gen Zers looking for holiday gifts.
The surveys include:
- Gen Zers were found to be more than twice (42%) as likely as the average (20%) to buy holiday gifts directly through social media, according to May 2024 research from Basis Technologies and GWI. That compares to millennials at 26%, Gen X at 15%, and baby boomers at 6%. Among overall respondents planning to buy gifts directly through social media, the most popular platform to do so was Instagram, cited by 57%, followed by Facebook (56%), TikTok (43%) and YouTube (38%).
- Newly released research from freelance services marketplace Fiverr International found that a third of Gen Zers in the U.S. plan to find gifts this upcoming holiday season via Facebook and Instagram ads, and nearly a quarter (24%) through influencer recommendations. Almost 54% of Gen Zers find gifts on TikTok.
- A recent survey commissioned by Forbes Advisor found that 40% of Gen Z individuals use TikTok to find information on “gift ideas” and “hair and makeup” compared to 28% and 25% searching for such topics on Google. Other topics Gen Zers searched for on TikTok more than Google included “wellbeing & fitness,” “recipe and meal ideas,” and “fashion brands.” Forbes Advisor said in the study, “This trend shows a shift toward video-based platforms for information discovery among younger audiences, suggesting businesses might consider adapting their digital strategies to align with these preferences.”
- The Shopify-Gallup Holiday Shopper Pulse 2023 survey found that 48% of young adults (18-29) expected to do at least “a little of” their holiday shopping on social media platforms, including Instagram, Facebook, and TikTok. That compares to the one-third of overall shoppers who said the same.
Speaking to CNBC late last year, Savannah Wei Shi, a marketing professor at Santa Clara University who studies consumer decision-making on digital platforms, said Gen Zers are gravitating toward social media platforms to guide their purchase decisions over search engines or official brand websites because they trust information from their peers. She said, “They moved from the wisdom of the crowd to the wisdom of their friends.”
Shi explained that those peers include influencers who are often more accessible than brands. “They can still communicate with an influencer on an equal footing,” she stated. “It’s not like you are talking to a brand where you send a message to an email address and they never reply to you. They do give the presence of a friend or trusted information source. It’s a lot more persuasive.”
Discussion Questions
Are social media platforms bound to become bigger factors around holiday gift discovery in upcoming years?
Why are TikTok and Instagram particularly appealing as sources of gift inspiration with younger consumers?
Will Gen Zers continue to leverage social media platforms and influencers to guide their purchase decisions as they age?
Poll
Loading …BrainTrust
Cathy Hotka
Principal, Cathy Hotka & Associates
Patricia Vekich Waldron
Contributing Editor, RetailWire; Founder and CEO, Vision First
Neil Saunders
Managing Director, GlobalData
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Social media is a very powerful channel for product discovery, especially for Gen Z. Combine this with the fact that a lot of consumers, especially younger ones, struggle with gift ideas, and you have a recipe for driving sales. Of course, many of the sales are made directly via social media since most platforms now have ecommerce built in. The lesson here is that all brands, especially those that rely on holiday sales, need to think about their social strategy and need to be creative in showcasing gift ideas.
Yes, of course, they will become bigger…as they didn’t even exist a few years ago how could they do anything but grow? What’s missing, tho – at least in this study – is a picture of exactly how important they are: 42% use them, but how often? exclusively or just a little? and is it something people will “grow out of”, or instead will users carry the habit with them as they age?
Younger consumers are starting households and have plenty of things to purchase. It only makes sense that the media they consume will present attractive offers. This is the 2024 version of my parents waiting for the afternoon paper in 1964.
Social media provides the perfect balance of aspiration and relatability. It allows users to see products in the ways they would incorporate them into their lives. It’s helpful context for shopping, so this all checks out.
When you think about it, it makes absolute sense because Gen Z grew up with an iPhone stuck in their hands. They live online. The rest of us found new things in catalogs and magazines, they have social media. Other than in-store, where else are they going to look for gift ideas? It’s a no-brainer. Social media is where the rest of us look, too. I buy a lot of things I see on social media and I am far from Gen Z.
It really can be a great place for finding things you never knew you needed!
As Gen Zs and Alphas enter the workforce in the coming years, more of them will spend their disposable income according to social media’s influence. Expect more holiday gift campaigns across social platforms like TikTok, Instagram and Pintrest.
TikTok and Instagram’s short-form video formats are compelling because we’re drawn to vivid and moving visual content. Beauty, fitness, fashion and food content succeed on social because they’re highly sensory categories.
The fact that Gen Z will do some of its holiday shopping on social media platforms, especially TikTok and Instagram, is not surprising.
These platforms provide a visually engaging and interactive shopping experience that appeals to Gen Z. Influencers and targeted ads also play a significant role in shaping their purchasing decisions. Additionally, the convenience of in-app purchasing makes the process quick and seamless.
Visually engaging content captures the attention of Gen Z and keeps them engaged longer. High-quality images and videos can showcase products more effectively, making them more appealing and easier to visualize in real life. This type of content also encourages social sharing, further amplifying the reach and impact of marketing campaigns. Db
The growth of the influence of Social Media is akin, in my mind, to the grow in recent years of User-Generated Content. The connective tissue is the voice of other consumers, rather than that of the brand itself, in guiding the opinions and perspectives of young shoppers with a degree of authenticity that builds confidence in the eye of the consumer.
A recent study by Walmart echoed this view that the impact of social media as a marketing platform is only going to increase in the years ahead as Gen Z consumers enter the peak adult spending years.
Location, location, location. Or, as Willie Sutton said, “I rob banks because that’s where the money is.” This trend isn’t just about holidays; it is even more important for every day.
The most interesting question in my mind is what technological changes will bring Generation Alpha to that buying mode.
No surprise here. Everyone, especially Gen Z and Alpha, use social media to stay connected and get inspiration.
Gen Z is the first fully digital generation. While this discussion highlights the gifting aspects for Gen Z, the underlying dynamics are more significant to brands and retailers. Technology and social media have transformed how they learn, communicate, and engage with each other and brands. Their lifestyle and digital devices allow them to effortlessly weave the online and the physical worlds in a boundaryless way. Social media has become the perfect plug-in to engage, navigate, and understand their world. Social media with trusted influencers can provide an immediate solution a gifting problem. While Gen Z is blazing the digital path, Gen Alpha will take it to places we have yet to imagine.
Social media platforms are bound to become bigger factors around holiday gift discovery in upcoming years as social media shopping has already proven to be a very powerful medium for product discovery. It comes down to convenience and meeting consumers where they are.
Younger shoppers, including Gen Z, often spend their free time perusing social platforms like TikTok and Instagram for both entertainment and inspiration. Both platforms are highly personalized, curating content based on users’ interests and preferences. This means that younger consumers are more likely to see gift ideas that align with their tastes and the people they follow. In addition, TikTok and Instagram also encourage user-generated content, including gift guides, hauls, and unboxing videos. This allows younger consumers to see real-life examples of how products can be used and presented as gifts. Not to mention, influencers on these platforms often collaborate with brands to promote products and gift ideas. The younger generation often look up to these influencers and are more likely to be influenced by their recommendations. Finally, convenience is of utmost importance to young consumers, and both TikTok’s short-form videos and Instagram’s quick-scrolling format make it easy for young people to quickly browse through numerous gift ideas and find something that catches their attention. Once they’ve found something they like, they can also shop directly through the app, ensuring a quick and seamless shopping journey. With the busy holiday season, this type of convenient shopping experience becomes even more crucial to winning over customers.
It’s fascinating how Gen Z relies heavily on social media like TikTok and Instagram for gift ideas, shifting away from search engines. With platforms like these shaping their buying decisions, businesses really need to keep up.
Speaking of which, staying updated on top social media platforms could be key for brands aiming to reach this younger audience.