Australia – Droves of Australians say social media has seduced them to spend, according to new research by Finder, a comparison site. Said survey of 1,009 respondents revealed 2 in 5 (40%) have bought something online after seeing it on social media – equivalent to 8.4 million people.
The average social media shopper spent $420 over the past year, adding up to $3.5 billion nationally. Moreover, social media has driven Aussies to purchase everything from clothing (25%), to beauty products (16%), electronics (15%), and accessories (12%).
Meanwhile, Facebook (61%), Instagram (52%), and TikTok (40%), are the top social media players when it comes to influencing Aussies to buy something.
It comes as no surprise that digital natives Gen Z were the most likely to have been influenced by these ads. More than 2 in 3 (68%) admit to buying an item they saw on social media, followed by more than half (52%) of millennials and 29% of Gen X.
Baby boomers were the least likely to be influenced – only 15% had bought something after seeing it on social media. Of those who were plied by their socials to splash out, the average Gen X spent $400 in the last year, compared to Gen Z ($293). While men (36%) were less likely to buy from social media than women (44%), they spent almost double ($553) that of women ($322).
Rebecca Pike, money expert at Finder, said social media platforms are increasingly shaping how people choose to spend their money.
“With advanced algorithms and data-driven strategies, advertisements are now more personalised than ever before. Have you ever mentioned a product in conversation and then immediately seen an ad for it the next time you opened your phone? By analysing users’ behaviours, interests, and online activity, these platforms seamlessly present tailored content that aligns with individual preferences,” she said.
She also said that it’s important to balance “treat yourself” culture with financial well-being.
“There’s absolutely nothing wrong with indulging in small luxuries every now and then – after all, treating yourself can be a great way to boost morale. But these splurges should come with a sense of balance and awareness, especially in today’s climate,” she stated.
Pike further added, “Ask yourself whether you can truly afford the item, and whether you will feel good about the decision later. That clothing or gadget might feel irresistible at the moment, but a pattern of these purchases can add up quickly and create financial strain in the long-run.”
She encouraged Australians to be mindful of scams when purchasing items through social media.
“Scammers often exploit social media platforms by creating fake advertisements or accounts to deceive unsuspecting consumers. It’s more important than ever to verify the authenticity of sellers, review feedback or ratings, and be cautious of deals that appear too good to be true,” Pike concluded.
