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: “The [financial] industry has been slow to adapt to the ways in which young people want to be communicated with and to communicate with each other.”—Ian Rosen, CEO, StockTwits (YPulse)

Instagram users can now purchase products without leaving the app. The platform’s shopping tags are evolving to allow users to check out directly inside the app from about 20 retailers using saved payment and shipping information. The move doesn’t just give Facebook a direct cut of each sale, but also allows the platform to collect data that they’ll leverage in their ad targeting. Instagram’s influence over young consumers’ purchases continues to skyrocket, and according to our Shoppability trend, 72% of Gen Z & Millennials are open to buying products on social media. (Recode)

Disney and MAC Cosmetics are debuting a nostalgic makeup line for Aladdin fans. The Disney Aladdin collection features lipstick, an eyeshadow palette, and bronzer in jewel and metallic hues that Princess Jasmine might wear with her bright turquoise outfit. The partnership is part of the lead-up to the live-action Aladdin’s debut, and isn’t MAC’s first time introducing fans to whole new worlds of Disney-themed cosmetics. In the past, they’ve also released Cinderella and Disney villains-themed lines. (Teen Vogue)

Google announced their ambitious plan to become “the future of gaming:” a cloud-based streaming service called Stadia. Gamers will be able to play across device (phones, TVs, tablets, etc.) without waiting for the title to load in a YouTube-connected setting. That means viewers can instantly play titles featured in videos and stream their own gameplay to YouTube—which could challenge industry leader, Amazon-owned Twitch. The Netflix-like service is set to launch this year. (The Verge)

Instagrammable dim sum is going global. The craze stared in Hong Kong, where Social Places serves up bao made to look like tiny pigs and charcoal custard bao filled with “a thick liquid that oozes out like lava,” introducing three or four new incarnations each month to keep customers coming back. Meanwhile at Disneyland Hong Kong, Crystal Lotus customers dine on buns that look like their favorite animated characters, including Frozen's Olaf. In the U.S., San Francisco’s Chili House and New York’s RedFarm are some of the first to take on the trend. (Bloomberg)

Netflix’s next choose-your-own-adventure series lets viewers chart Bear Grylls’ journey through the wilderness. Soon, Netflix viewers will have the chance to become outdoors experts from the comfort of their couches, as they make the survival show celebrity’s choices as he traverses tricky situations. Grylls himself says that he’s “giving viewers an all-access pass to explore the world and its landscapes in my boots” and that “For the first time, my survival is in your hands.” (THR)

Quote of the Day: “One of the biggest myths about Millennials is that they do not want to engage with human beings, especially if a chatbot, app, or a website can be deployed.”—Xiomara Lorenzo, Director, Society of Grownups (YPulse)

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