Social Media Ads Influence Physical-Store Purchases

Social Media Ads Influence Physical-Store Purchases

In another sign that Instagram’s e-commerce strategy is succeeding, new research shows that 45% of millennials report purchasing apparel products from brands that they first discovered on the mobile platform.

The finding is included in the latest millennial survey from Roth Capital Partners, which includes responses from 2,500 U.S. consumers ages 19 to 39.

Brands are finding that social channels are a great way to connect with young, mobile consumers on a personal level, according to Paul Zaffaroni, managing director and head of consumer investment banking at Roth.

“Millennials are seeking brands that share their values and speak to them directly in a personalized manner,” Zaffaroni notes in the new report.

Conducted in partnership with MFour Mobile Research, the report also points to a symbiotic relationship between mobile and physical commerce.

For example, 63% of millennials who purchase items online prefer to return their online purchases in-store, and 76% of those report staying and shopping after making in-store returns.

Additionally, about half (47%) say they’re more likely to buy digitally native brands that begin offering products in-store.

While social platforms are helping millennials discover new apparel and footwear brands, most say they still prefer staples like Nike, Adidas, and Vans.

Leading the way in mobile commerce, Instagram began offering in-app checkout for its shoppable posts in 2019. Ecommerce made up nearly 16% of total interactions on the platform last year, according to a report from Socialbakers. Comparing the second and third quarters of 2019, e-commerce grew 118.3% on Instagram — and 91.4% on Facebook, the social media marketing platform found.

Among other purchasing trends, Roth found that 53% of millennials remain willing to pay a premium of about 10% for “socially responsible” brands.

Also, about two in three now report using dairy alternatives, regardless of their income level, and 72% of those who use such alternatives say they’re willing to pay a premium of at least 5%.

By Roth’s calculations, millennials will comprise nearly three-quarters of the U.S. workforce by 2025.


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