How social media channels shape shopping behavior

Instagram and TikTok: Social media giants as e-commerce platforms

18/12/2024

by Julia Pott

Social media has developed from a communication platform into one of the most important drivers of purchasing decisions. Channels such as Instagram and TikTok in particular have a massive influence on the consumer behavior of younger generations such as millennials and Generation Z. Brands use the popularity of these platforms to place targeted advertising and make the path from product discovery to purchase as short as possible.

Close-up of a person using a smartphone while online shopping and digital payment icons are superimposed over it; copyright: Adobe Express

How do social media channels affect shopping behavior?

Social media has fundamentally changed shopping behavior. Studies show that consumers are increasingly using social media as a source of inspiration for purchases. Personalized content, influencer recommendations and user-generated content such as videos and reviews appeal directly to potential customers. Social media platforms are no longer just advertising spaces, but interactive shopping environments.

Many consumers, especially younger ones, now make purchasing decisions based on social media content. For many, social media channels have replaced platforms such as Google or Amazon as the first port of call for product searches. Inspiration ranges from direct recommendations to subtle product placements in posts and videos. Easy access to online stores through “buy now” buttons and shoppable posts significantly shortens the path from product discovery to purchase.

Attention, emotion, conversion! Promotional and marketing activities can have a major impact. To do so, they must be applied in a targeted manner and implemented with the best tools. You will find inspiration for this in our Retail Marketing dimension at EuroShop!

An influencer presents a product in front of the camera while the recording can be seen live on a smartphone screen; copyright: Adobe Express

Instagram: Visual shopping experience with a high conversion rate

Instagram is one of the leading platforms when it comes to visual marketing and shopping. According to a collection of facts from Dream Local Digital LTD, 130 million people interact with shoppable Instagram posts every month and 70% of active users store on Instagram, which underlines the platform's important role in online shopping. A similarly high proportion of users state that Instagram posts inspire them to buy products.

With features such as Instagram Shopping, the “Explore” page and the “Shop Now” button, the platform becomes a virtual shopping mall. The ability to buy products directly in the app significantly increases conversion rates. Brands such as Adidas, Sephora and H&M use this marketing option successfully.

TikTok: The trendsetter for spontaneous purchases

TikTok is the newcomer among shopping channels, but is already an important marketplace for younger target groups. The format of the short videos and the high viral reach ensure a quick and intensive influence on purchasing behavior.

According to a recent study by First Insight, TikTok played a central role in Christmas shopping: 73% of consumers planned to use the platform as a source of inspiration for their gifts. Almost 60% intended to buy their products directly via the TikTok store. TikTok has become an important sales platform for retailers, with 81% of retailers surveyed using the platform to sell directly to consumers.

The hashtag #TikTokMadeMeBuyIt is proof of the platform's typical purchase motivation: impulsive shopping through viral content. Products that become the focus of attention through TikTok trends often record sales figures that skyrocket in no time at all. This is also felt by retailers: more than two thirds of retailers have already experienced supply bottlenecks triggered by content that has gone viral.

However, TikTok's future is uncertain, as the study shows, as political discussions in the USA about a possible ban on the platform due to data protection and security concerns are ongoing. Retail companies are already considering switching to other social media platforms such as Instagram or Facebook.

Neon-colored shopping cart on a digital background depicting online shopping and social media icons; copyright: Adobe Express

Social media marketing as a driver of consumption

The fusion of social media and e-commerce has long been a reality. Instagram and TikTok are more than just social networks – they are sales platforms that shape purchasing decisions through influencers, user-generated content and innovative shopping features. For retailers, this means If you want to reach your target group and younger generations in particular in the long term, you need to integrate social media strategically and creatively into your marketing strategy.

Sources: article by Dream Local Digital LTD, blog article by Sprinklr Inc., press release by First Insight, Inc.