How social media influence 71% consumer buying decisions https://www.searchenginewatch.com/2020/11/20/how-social-media-infl...

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How social media in�uence 71% consumer buying decisions

How social media in�uence 71% consumer

buying decisions
What’s the impact of social media on consumer buying decisions? How does
social media buying look today? How can it change in the future? Founder
and CMO at SEO PowerSuite and Awario, Aleh Barysevich answers all these
questions.

Author
Aleh Barysevich

Date published
November 20, 2020

Categories
Digital Marketing (https://www.searchenginewatch.com/category/digital-marketing/)
Mobile (https://www.searchenginewatch.com/category/mobile/)
ROI Marketing (https://www.searchenginewatch.com/category/roi-marketing/)
Social (https://www.searchenginewatch.com/category/social/)

30-second summary:
• Due to the rise of online shopping and the amount of time people spend on
social media, social media impacts consumer buying decisions.
• Consumers who are in�uenced by social media are four times more likely to
spend more on purchases.
• There are four ways in which social media has a direct in�uence on purchase
decisions.
• Social media and online shopping shortened the customer journey.
• Social media ampli�ed the impact of social proof or word-of-mouth.
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• Social media in�uencer marketing is one of the most effective ways to reach

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your to
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• Stories (https://www.searchenginewatch.com)
and ephemeral content are a new way to connect to your audience.

• Every social media platform is different and can be useful for different goals.

A large share of purchases are made online nowadays and in 2020 this number has
grown signi�cantly thanks to the lockdown. As the number of internet users increases
and tech companies develop more ways to integrate the online world into shopping,
online retail is expected to grow exponentially. Logically, many consumer buying
decisions are made online as well, and where do people spend most of their online
time — on social media.

According to GlobalWebIndex (https://blog.globalwebindex.com/chart-of-the-day/

social-browsers-brand/), 54% of social media users use social media to research
products and 71% are more likely to purchase products (https://blog.hubspot.com/
blog/tabid/6307/bid/30239/71-More-Likely-to-Purchase-Based-on-Social-Media-
Referrals-Infographic.aspx) and services based on social media referrals. I bet you
yourself made a purchase decision based on what you saw in your feed at least once,
be it a post from a friend or an ad that convinced you.

It’s hard to say exactly how much social media in�uences customers, not just what
they buy, but their consumer habits in general. Social networks changed the way we
promote products and even gave us new ways to advertise. Let’s talk about some
factors that impact customers nowadays.

How social media in�uences consumer buying

decisions
1. The shortened customer journey
The �rst thing that you notice when it comes to customers on social media is the
shortened customer journey. It used to be that people found out about a product, saw
an ad on TV multiple times, and next week they may have gone shopping and �nally
bought the product. Now, this process can take minutes.

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According to the Deloitte (https://www.bizjournals.com/bizjournals/how-to/marketing/

2015/05/how-social-media-in�uences-consumer-buying.html) report, 29% of social
media users are more likely to make a purchase on the same day of using social
media. That means that once they see a product, they simply click on the link and buy
it: there’s no need to wait before they go shopping. Moreover, the same report states
that consumers who are in�uenced by social media are four times more likely to spend
more on purchases.

The customer journey is not just shorter but it’s also more complicated now. Social
media has made product research more accessible to users. For example, if your
customer sees a product on Instagram, they can immediately search the hashtag to
look up other reviews and decide whether they should buy it or not. As a result,
customers spend more time on research and check more sources for reviews.

62% (https://www.salesforce.com/form/pdf/state-of-the-connected-customer-2nd-
edition/) of customers say they share bad customer experiences with other people.
Thus it’s extremely important to keep an eye on your online reputation (https://
awario.com/blog/online-reputation-management-the-ultimate-guide/?
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) and seek out reviews on social media.
Remember that every review on social media (https://awario.com/blog/negative-
reviews-respond-like-pro/?utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) is important — and that �ts nicely with
my next point.

2. The in�uence of social proof

Admittedly, social proof (https://awario.com/blog/social-proof-research-marketing-
applications-5-examples/?utm_source=searchenginewatch&utm_medium=buying-
Sign up to our Newsletter ()
decisions&utm_campaign=searchenginewatch) is not a new concept: man is a social

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decisions&utm_campaign=searchenginewatch) is not a new concept: man is a social

animal,
This site and we’ve
uses cookies been
to improve yourgiving each other
user experience. Readrecommendations for centuries. The thingAccept
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these recommendations and anti-recommendations can now be heard by hundreds of
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people.

Every time you tweet or post about this amazing cafe or the shampoo that did wonders
to your hair, your social media followers see it and might be moved to try it as well. The
same goes for negative opinions and rants. As per Forbes (https://
www.socialmediatoday.com/marketing/masroor/2015-05-28/social-media-biggest-
in�uencer-buying-decisions), 81% of consumers’ purchasing choices are in�uenced by
their friends’ posts on social media.

Resources
Analytics The 2023 B2B Superpowers Index (https://
www.searchenginewatch.com/resources/the-2023-b2b-superpowers-index/)

Analytics Data Analytics in Marketing (https://www.searchenginewatch.com/

resources/data-analytics-in-marketing/)

Digital Marketing The Third-Party Data Deprecation Playbook (https://

www.searchenginewatch.com/resources/the-third-party-data-deprecation-
playbook/)

Digital Marketing Utilizing Email To Stop Fraud-eCommerce Client Fraud Case

Study (https://www.searchenginewatch.com/resources/utilizing-email-to-stop-
fraud-ecommerce-client-fraud-case-study/)

Moreover, people proactively ask for recommendations on social media (and brands
unfortunately often ignore them). According to this study by Awario (https://
awario.com/blog/online-reputation-management-the-ultimate-guide/?
Sign up to our Newsletter ()
utm_source=searchenginewatch&utm_medium=buying-

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decisions&utm_campaign=searchenginewatch), only 9% of brand conversations areAccept ()

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answers to customer questions, however, depending on the industry, there can be more

(https://www.searchenginewatch.com)
than 100 people asking for recommendations on social media in one month.

As I mentioned above, social proof mostly impacts your friends and the people you
know. But more and more people on social media don’t just follow their friends — they
also follow in�uencers. That’s where in�uencer marketing (https://
www.searchenginewatch.com/2020/05/13/how-in�uencer-marketing-can-survive-the-
oncoming-recession/) comes into play.

3. The power of in�uencers on consumer buying decisions

In�uencers are the social media users (https://www.searchenginewatch.com/
2020/11/17/harness-the-power-of-integrated-cro-and-social-media/) that have a robust
loyal audience that often shares the same interests. Their opinions are naturally seen
by a bigger number of people, people that trust them.

According to a study by the In�uencer Marketing Hub (https://

in�uencermarketinghub.com/in�uencer-marketing-statistics/), almost 50% of Twitter
users have made purchases as a direct result of a Tweet from an in�uencer.

Micro-In�uencers are especially effective in persuading their audience since they are
usually experts in some niche
Signand
upspeci�c
to ourtopic, which makes
Newsletter () them a natural source of
recommendations for this topic. If you’re selling a niche product, �nding social media

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recommendations for this topic. If you’re selling a niche product, �nding

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in�uencers (https://awario.com/blog/how-to-�nd-social-media-in�uencers/?

(https://www.searchenginewatch.com)
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) in your niche — Instagram bloggers,
vloggers, TikTokers, or Facebook group admins — is a great way to reach your
audience.

Gen Z and Millenials are more likely to be in�uenced, with 84% of millennials saying
user-generated content (https://www.searchenginewatch.com/2020/05/04/why-these-
three-content-types-are-winning-quarantine-season/) from strangers has at least some
in�uence on how they spend their money.

The in�uence of Stories on consumer buying

decisions
Ephemeral content (https://awario.com/blog/the-success-of-ephemeral-content/?
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) is a relatively recent trend but it’s
already winning over social media users and brands alike. Snapchat was the �rst to use
Stories as a format, but it’s Instagram that popularized it and now boasts more than
500 million daily active users.

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The content shared via Instagram Stories (https://awario.com/blog/9-ways-instagram-

6 of 16 30/04/2024, 08:00
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The content shared via Instagram Stories (https://awario.com/blog/9-ways-instagram-

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stories-help-business/?utm_source=searchenginewatch&utm_medium=buying-

(https://www.searchenginewatch.com)
decisions&utm_campaign=searchenginewatch) is typically more raw and un�ltered,
which allows brands to create a more genuine image. It enables companies to take
people behind the scenes and show how they operate, their work culture, and the team
behind the products. All this helps to foster an authentic connection to a brand.

So these are the features exclusive to social media that shape customer behavior
today. But as you probably know, every social media platform is a little different.
Oftentimes, brands wonder which social media platform they should focus on (https://
awario.com/blog/social-media-platforms/?
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch). Let’s go through a list of most popular
platforms and see what differentiates them from one another.

Most popular social media platforms

1. Facebook
Facebook remains the biggest social media platform in the world (with almost 1.7
billion users (https://www.statista.com/statistics/490424/number-of-worldwide-
facebook-users/
#:~:text=In%202020%2C%20the%20global%20number,from%201.34%20million%20in%202014.)),
even though it had its fair share of scandals and controversies in recent years.

The sheer size of the network means that you’ll be able to reach more people on there
but be careful — Facebook is not as popular as it used to be. Edison Research’s In�nite
Dial study (https://www.edisonresearch.com/in�nite-dial-2019/) from early 2019
showed that 62% of U.S. 12–34 year-olds are Facebook users, down from 67% in 2018
and 79% in 2017. This decrease is particularly notable as 35–54 and 55+ age group
usage has been constant or even increased.

Still, Facebook accounts for 50% of total social referrals and a further 64% of overall
social revenue, shows Business Insider (https://www.businessinsider.com/social-
commerce-2015-report-2015-6).

In 2015, Facebook was responsible for in�uencing more than half, 52% of consumers’
online and o�ine purchases, shows DigitasLBi Commerce (http://www.thedrum.com/
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news/2015/04/24/facebook-in�uences-over-half-shoppers-says-digitaslbi-s-
connected-commerce-report)

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connected-commerce-report).
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Lately, the company has been trying to �x its reputation by introducing more control

(https://www.searchenginewatch.com)
over advertising and data management (https://awario.com/blog/social-media-news-
january-2020/?utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch#facebook).

2. Instagram
Instagram is an amazing platform for brands since it gives you so many opportunities
to show off your product: photos, videos, Stories, galleries, �lters, and more. It now
boasts more than one billion (https://about.instagram.com/about-us) monthly active
users.

What’s great about the platform is that it’s popular among all generations in all
countries. 80% of Instagram users (https://awario.com/blog/36-surprising-social-
media-statistics-you-should-know-in-2019/?
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) follow a business account. 73% of U.S.
teens say (https://www.emarketer.com/chart/227856/best-ways-retailerbrand-
communicate-about-new-productspromotions-according-us-teens-spring-2019-of-
respondents) Instagram is the best way for brands to reach them with new products or
promotions.

Moreover, the platform itself facilitates shopping by adding shopping tags and
checkout options to the posts. 130 million Instagram accounts (https://
www.facebook.com/business/instagram/shopping) tap on a shopping post to learn
more about products every month.

3. TikTok
Although TikTok is a relatively new platform, its rapid growth made it an important
source of brand awareness (https://awario.com/blog/brand-awareness-how-to-
measure-increase/?utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) for social media users, especially Gen
Z.

TikTok now has 800 million active users worldwide, and 41 percent of these users are
aged between 16 and 24. So, if you want to reach a younger audience, TikTok is the
place to be.
Sign up to our Newsletter ()
TikTok’s algorithm (https://www.searchenginewatch.com/2020/09/11/unpacking-the-

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TikTok’s algorithm (https://www.searchenginewatch.com/2020/09/11/unpacking-the-

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tiktok-algorithm-three-reasons-why-its-the-most-addictive/) is also amazing for niche


(https://www.searchenginewatch.com)
and speci�c products since it curates your feed based on your interests. It makes your
job of �nding new followers easier — the algorithm will push your content into the
feeds of your potential audience.

Moreover, TikTok recently launched new ways to advertise (https://awario.com/blog/

advertising-on-tiktok-types-and-tips/?
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch) on the app, giving brands more
opportunities to attract customers.

4. Twitter
According to Hubspot, Twitter is a source of product discoveries for many people.

Because of its quick nature and ability to connect to basically anyone, it’s a perfect
place to ask for recommendations. SproutSocial (https://sproutsocial.com/insights/
social-media-marketing-strategy/)shows that 53% of consumers recommend
businesses or products in tweets while a further 48% follow through to purchase those
products or services.

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5. YouTube

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There’s a debate on whether YouTube is actually a social media platform or more of a


(https://www.searchenginewatch.com)
streaming platform or content platform. Nevertheless, it’s one of the most popular
platforms out there.

More and more people are looking up product reviews on the platform. Keep in mind
that 80% of people (https://www.thinkwithgoogle.com/marketing-strategies/video/
online-video-shopping/) who said that they watched a YouTube video (https://
www.searchenginewatch.com/2020/04/27/ultimate-guide-to-video-marketing-on-
youtube/) related to a product they want to buy said that they did so at the beginning of
their buying process.

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If you’re ready to invest your time in creating content for YouTube (https://awario.com/

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blog/4-ways-to-brand-your-youtube-channel/?
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utm_source=searchenginewatch&utm_medium=buying-

(https://www.searchenginewatch.com)
decisions&utm_campaign=searchenginewatch), it can be a highly rewarding task. Just
look at the BonAppetit channel that belongs to the magazine of the same name. It has
almost 6 million subscribers and more than 1,3 billion views when the total circulation
for the magazine doesn’t exceed 1,600,000 copies in a year.

Conclusion
As you see, the data and our daily experience on the Internet show that it’s hard to
argue that social media in�uence purchase decisions. The impact of social media on
customer purchase decisions can be explained by many factors: social proof, the
penetration of social media, and the availability of online retail.

However, it’s getting more and more di�cult to make your brand stand out on social
media. Focusing on the right platform, building creative social media marketing
campaigns (https://awario.com/blog/effective-marketing-campaigns-2019/?
utm_source=searchenginewatch&utm_medium=buying-
decisions&utm_campaign=searchenginewatch), and using up-to-date technologies will
help you with that.

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Resources(https://www.searchenginewatch.com) 

whitepaper | Analytics (https://www.searchenginewatch.com/post/category/analytics/)

The 2023 B2B Superpowers Index

 9m

whitepaper | Analytics (https://www.searchenginewatch.com/post/category/analytics/)

Data Analytics in Marketing

 11m

whitepaper | Digital Marketing (https://www.searchenginewatch.com/post/category/

digital-marketing/)
The Third-Party Data Deprecation Playbook

 1y

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