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TikTok’s “shoppertainment” sales model is not good for Gen Z’s wallets. 

Mar 24 2023

TikTok’s “shoppertainment” sales model is not good for Gen Z’s wallets. The official TikTok for Business webpage refers to the app’s “shoppertainment” content as “an infinite loop”—and young shoppers are finding it hard to escape. We know TikTok’s algorithm is designed to provide personalized entertaining content that keeps users on the app and recently, the app’s sales pitch to brands is promising that users will not only be more inclined to make purchases, they’ll also be returning customers. TikTok’s own What’s Next report even found that 67% of users say the app “inspired them to shop even when they weren’t looking to do so.” Plus, the tech giant’s “global ad revenue soared from $4bn in 2021 to over $11.6bn last year and it made $205m more from in-app purchases than Facebook, Twitter and Instagram combined.” That being said, there’s been some pushback from young users who are going into debt because of this. YPulse research shows that TikTok is the number one place Gen Z sees ads that make them want to buy—and the hashtag #TikTokMadeMeBuyIt proves their favorite app is also a place they enjoy sharing their finds. (The Guardian)