Credit Karma Inc.

07/17/2024 | News release | Distributed by Public on 07/17/2024 08:06

De-influenced anyone? In some cases, social media gives consumers the shopping ick

  • Nearly 2 in 5 Americans (38%) have purchased products advertised on social media in the past year, and nearly a quarter (23%) of them have charged $1,000 or more to credit when making such purchases.
  • 69% of American social media users say they have been de-influenced, meaning having chosen not to purchase items on social media - the top reason being they don't trust influencers on social media who push products (32%).
  • 88% of Gen Z social media users have been de-influenced - the top reason being social media product promotions drive unhealthy levels of overconsumption (38%).

Social media platforms like TikTok and Instagram have become some of the most popular destinations to shop online - even driving some people to take up shopping addictions. While the power of targeted ads, product virality and influencer marketing has influenced many consumers to overspend, in other cases, it's leaving online shopping baskets empty.

According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma among 2,042 U.S. adults ages 18 and older, nearly 2 in 5 Americans (38%) have purchased products advertised on social media in the past year; among them, nearly a quarter (23%) have charged $1,000 or more to credit when making such purchases, whether using a credit card or buy now, pay later service.

While plenty of American consumers have succumbed to shopping temptations that social media platforms pose via targeted ads and influencer promotions, in some cases, it can have the opposite effect. Nearly three quarters (69%) of American social media users say they've been de-influenced, defined as specifically having chosen not to purchase items advertised on social media. The top reason consumers have intentionally chosen not to make purchases on social media is because they don't trust influencers on social media who push products (32%). This holds true when looking at millennials (28%, ages 28-43), Gen X (34%, ages 44-59) and baby boomers (38%, ages 60-78) social media users, but it goes a bit deeper for Gen Z.

A majority (88%) of Gen Z social media users say they've been de-influenced, and the top reason for this is unhealthy levels of overconsumption that social media product promotions drive (38%). This adds up considering Gen Z has made a name for themselves as the most eco-conscious generation to date. On that note, a vast majority (90%) of Gen Z Americans say they've shopped second-hand, with motivating reasons being to play a part in fighting fast fashion (22%) and wanting to be environmentally conscious (28%).

Here is a the full breakdown of why different generations of social media users have been de-influenced to purchase items on social media:

Reasons for being de-influenced Total social media users Gen Z users Millennials users Gen X users Baby Boomerusers
I don't trust influencers on social media who push these products 32% 27% 28% 34% 38%
I see too many knock-off / counterfeit products 28% 34% 28% 25% 27%
Social media product promotions drive unhealthy levels of overconsumption 26% 38% 27% 18% 24%
I feel overwhelmed by how many advertised products I see 19% 26% 22% 16% 14%
I don't want viral products that everyone else has 14% 21% 14% 14% 11%
I've had a bad experience with a product I've purchased 14% 20% 16% 11% 13%
It has a negative impact on the environment (e.g. contributes to waste, promotes fast fashion) 12% 23% 14% 8% 8%
I've purchased products that I never used 7% 8% 9% 7% 3%
I've gone into debt purchasing products I've seen advertised 2% 3% 4% 3% 1%
Other 4% 6% 3% 5% 3%

"American consumers being 'de-influenced' to purchase items they see on places like TikTok and Instagram shows the level of nuance that exists in the social media space, particularly as it relates to consumer behaviors driven by these platforms," said Courtney Alev, consumer financial advocate at Credit Karma. "In many cases, social media can be a catalyst for poor financial habits or feelings of inadequacy, while in other cases, it can spur healthy financial trends and a sense of community. Regardless, these social media platforms do a very good job at driving consumers to overspend when scrolling their apps, especially considering how easy it is to purchase something in just a few clicks. If your credit card details are saved online, you might consider deleting stored card information in your apps and browser to make shopping online less frictionless."

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from June 18-21, 2024 among 2,042 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].