This Chart Shows How Instagram’s Influence Over Young Consumers Is Skyrocketing

Just how much is Instagram influencing young consumers’ purchases compared to good old TV? This single chart shows just one year has dramatically shifted the landscape…

We’ve said before that social media shopping would change retail. For Millennials and Gen Z, there’s a rising expectation that the whole world is their showroom, and wherever they go—from Instagram to hotels—the items they see are an “add to cart” click away. Young consumers are making 360 shoppability the next era of retail, and our research on the trend found that 72% of 13-35-year-olds are open to buying products on social media.

There is no question that these platforms are also influencing their purchasing decisions. According to our social media behavior survey, 53% of 13-36-year-olds, and 60% of 13-17-year-olds, browse through social media to find things they want to buy. Ands they’re not just wishing they could buy the things they see in influencers’ feeds, they’re seeing ads that directly appeal to their interests and tastes. It’s no wonder that when we looked at the best and worst places to put ads, according to young consumers themselves, we found that social media is by far the top type of platform to use to reach Millennials and Gen Z. Over half of 13-36-year-olds listed a social media platform as the place they last saw an ad that made them want to purchase something, a huge jump over the second most-popular platform TV. This signals a shift from 2018, when TV was still the top-ranking space influencing purchases among Millennials. And one platform in particular has made a giant leap in purchasing influence in the last year: Instagram.

The platform has made advertising and in-app shopping a major priority. They continue to find new places to place ads and purchase links, adding shoppable tags to Stories…

 
 

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The Newsfeed

Quote of the Day: “Retail should be a facilitator for experience, rather than just selling product.”—Sharmandean Reid, Founder, Wah Nails London (YPulse)

Millennials seeking portable booze are cracking open canned wine. Even though the category still only accounts for less than 1% of the Millennial-favorite alcoholic beverages’ market, Nielsen reports it spiked 69% last year and continues to gain ground. An exec at Delicato Family Wines explains, “Millennials have grown up in a world where consuming wine outdoors—or any location outside of the traditional table—is more acceptable than generations past.” (Wine Spectator)

Summer camps are cropping up to teach kids how to become YouTubers. At I-D Tech Camps, Level Up, and Star Camps, kids can learn all about how to, as the latter puts it, “Become an Internet sensation.” They offer courses in how to create and post videos, from shooting clips to editing audio, and how to build their personal brand. But don’t worry, most are framing YouTubing as a hobby, not a career, and setting kids’ expectations accordingly. (WSJ)

A new bill could change the free-to-play profit model that’s made games like Fortnite top earners. Senators have proposed the official ban of “loot boxes,” or items that players can buy (and sometimes must buy) to win a video game, often gambling on what’s inside. Senator Ed Markey explains that “Inherently manipulative game features that take advantage of kids and turn play time into pay time should be out of bounds.” For some, this will eliminate a key revenue stream and open the door to review other in-game purchases.  (The Verge)

A social media overhaul upped Corn Nuts’ sales by 12%—with no paid support.The snack’s sales were stagnant before a new exec took over their Twitter, infusing it with the personable tone food brands have become known for (and sometimes notorious for). Since then, followers spiked from 650 to 21,000, and what they’re calling a “scrappy” strategy “absolutely translated to sales,” reporting that retail sales spiked 12% and Millennials’ repeat purchases rose the same percentage. (Marketing Dive)

The retail apocalypse continues, with 7,000 more stores closing their doors in 2019. CoStar Group estimates that the square footage of retail space closed has topped its own record each year since 2017, and this year they’re “predicting more of the same.” PayLess ShoeSource, Gymboree, Dressbarn, and Charlotte Russe lead the list of number stores planned to shutter this year, as retailers learn to scale down size and up Experiencification for young shoppers. (Business Insider

Quote of the Day: “It’s a really interesting time at the moment in catalog [music]…Sometimes, it’s a question of how we make something out of nothing.”—Tim Fraser-Harding, President, Global Catalogue, Recorded Music at Warner Music Group (Rolling Stone)

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