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Growing up in the digital generation certainly has its perks when it comes to finding online savings. While some Gen Zers might not have financial stability yet, they have one thing older generations might not: digital savvy. In fact, this generation is twice as likely (42%) as the average American (20%) to do their holiday shopping through social media, according to May 2024 research from Basis Technologies and GWI.
While the survey doesn’t specify Gen Z’s preferred social media platforms for shopping, Instagram ranks the highest for holiday shopping across generations (57%), closely followed by Facebook (56%). TikTok (43%) and YouTube (38%) are also popular. Although social commerce may be relatively new, it’s quickly becoming the go-to for saving money on holiday shopping.
Here are five ways Gen Z is transforming the traditional shopping model to find the best deals on holiday gifts.
Shopping and Scrolling
It’s no secret that young Americans spend a couple of hours daily scrolling through social media. Instead of clipping coupons or following conventional shopping methods, they are killing two birds with one stone — shopping and scrolling simultaneously.
“Gen Z doesn’t just shop in places or follow traditional shopping methods,” said Taylor Price, Gen Z personal finance expert and founder of Priceless Tay. “Instead, they use apps like TikTok, Instagram and Facebook to find personalized deals, connect with influencers and see what’s popular right now. Gen Z can find deals and discounts more quickly on social media than past generations could through traditional advertising or store promotions.”
Today’s social media platforms make shopping easier than ever by personalizing ads and recommendations to user’s likes and engagement. Unlike traditional online shopping, where you have to search for products and add them to your cart, social media hand-delivers specific products that align with your interests while you scroll, often with exclusive discounts — making pressing “buy” faster and more effortless than ever before.
Leveraging Social Media Algorithms
Gen Z’s comfort with social media gives them an extra edge when it comes to finding deals, thanks to the power of algorithms.
“The algorithms on social media platforms encourage constant product exploration,” said Annette Harris, AFC, owner of Harris Financial Coaching. “After watching a product video, the algorithms assess your interest and suggest similar videos or content from the same creators. This can lead to frequent clicks on familiar products or creators, which can be beneficial if the purchases are relevant.”
Platforms like TikTok, Instagram and Facebook use these algorithms to offer personalized products and inform users of relevant discounts, allowing them to save time and money.
With instant discounts and deals at Gen Z’s fingertips — and constantly resurfacing in front of them — it’s easier than ever for them to leverage social media to score the best bargains. The downside of this fast-evolving social commerce? It makes impulse buying almost too easy, with irresistible deals surfacing in real time as you scroll.
Following Influencers for Exclusive Discounts
Influencer marketing plays a huge role in how Gen Z shops, offering both entertainment and exclusivity. As a generation that values genuineness and honesty, Gen Z gravitates toward influencers who align with their values, trusting their product recommendations as an investment they won’t be let down by.
“Gen Z’s shopping habits are affected by influential people and content that goes viral,” Price said. “Influencers often give out discount codes and show off products in ways that make people feel rushed and build trust….
Read More: 5 Ways Gen Zers Find the Best Holiday Shopping Deals Through Social Media