It seems we’re under the influence, with half of Australians surveyed admitting they’ve bought items because of social media, according to new Compare the Market research*.
The research found that 50.1% of respondents made purchasing decisions based on what they saw on their social media feeds, whether it was a product featured by an influencer, an enticing ad, or even suggestions from friends.
But this figure was a lot higher for Gen Z and Millennials (84% and 66% retrospectively), who were more likely than any other age group to turn their screens into shopping malls while just 22% of Baby Boomers were inclined to do so.
The research highlights that the most common items purchased because of social media influence include clothing (26%), shoes (16.6%), and groceries (14%).
Interestingly, while fashion and everyday items top the list, people are also making bigger, more significant purchases based on what they see on social media. Close to one in five (18.4%) said they’ve purchased an electricity plan or a home, health or travel insurance product after seeing content online.
Compare the Market’s Chris Ford urged Australians to ensure they put an appropriate lens over the advertisements to help guide their spending decisions.
“There are a number of well-known, trusted brands who advertise some great sales on social media, but there is also a dark side on the platforms as well,” Mr Ford said.
“It’s crucial to research the brands before purchasing. Maybe even ask a family member or a friend if they have heard of them before, and what they think of it.
Think before you click
To avoid paying too much, Mr Ford suggests comparing prices, reading customer reviews and checking the legitimacy of websites.
“Social media shopping can be risky because it often encourages impulse buying, and consumers might not have the time to fully assess the quality or suitability of the product,” Mr Ford said.
The warning aligns with recent cyber security warnings, as scammers and fraudulent sellers have increasingly targeted social media
Phishing links, fake ads, and counterfeit products are being reported more often, with consumers at risk of losing money or receiving substandard items.
To avoid falling into these traps, Mr Ford emphasises the importance of making purchases online through well-known, reputable retailers.
A growing trend to watch
The influence of social media on consumer spending shows no signs of slowing down, and it’s clear that many Australians are turning to these platforms for their shopping needs.
Whether it’s fashion, groceries, or even financial products, the convenience and appeal of social media shopping is undeniable.
However, as the trend continues to grow, so does the need for consumers to remain informed and cautious.
“Next time you’re ready to click ‘buy’, take a moment to assess the brand that’s advertising,” Mr Ford said.
“Compare prices, ensure you’re getting a good deal and not getting ripped off.”
Lastly, Mr Ford urged people to use websites like Compare the Market to help them look for a better deal on their insurance, energy and home loans.
*Compare the Market survey of 1,001 adult Australians conducted in September 2024.
For more information, please contact:
Natasha Innes | 0416 705 514 | natasha.innes@
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, travel and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
