Even those who aren't actually completing a purchase on social media are still turning to the ... [+]
As the holiday shopping season is now in full gear, it is becoming clear that it will likely be one for the record books. Despite this year's record inflation, Americans are expected to spend a total of between $942.6 billion and $960.4 billion this season, a six to eight percent increase over last year, according to data from the National Retail Federation (NRF).
A record 59% of online 2022 Cyber Monday shoppers also used their mobile device, up from 52% in 2021.
"Even though people may be fatigued by staying indoors through the pandemic, they can't beat the convenience of shopping on their phones," said Drew Wilkinson, head of marketing at SimpleTexting.
Shopping Goes Social
More Americans than ever are now using social media platforms to make purchases from their devices. A Statista.com survey found that 34% of shoppers of all ages were turning to social media – and the findings were in line with Forrester's Retail Topic Insight Survey, 2022, which found that social media as a shopping option has only seen a slight uptick this year.
In fact not everyone is sold on social. According to Forrester, 62% of online adults haven't completed a purchase inside any social media networks.
Yet, it is likely a matter of the demographic.
Younger Americans are more readily turning to Facebook, YouTube, and Instagram. A Deloitte survey found that 60% of Gen Z and 56% of millennials do plan to turn to social media for holiday shopping this year.
What is also notable is how shopping patterns are changing because of the availability of mobile devices, where consumers don't have to be in front of a computer to make an online purchase.
"Holiday shopping is now synonymous with mobile shopping," added Wilkinson. "Consumers have the convenience of shopping from the comfort of their homes, and companies are absolutely capitalizing on this opportunity. It's no wonder that with more time spent on our phones, better ad targeting capabilities, the rise of SMS marketing, buy-now-pay-later options, and creative sponsored content, we're seeing high rates of mobile impulse buying."
SimpleTexting found that more than one in four Americans were more likely to make an impulse purchase if the website offers a "buy now, pay later" option, while one in five was also likely to make an online purchase within a couple of hours after seeing an ad, including those on social media.
However, more than half – 53% - also said they'd cancel an online purchase before it shipped. It further identified the social media platforms where Americans are now making the most "impulse purchases," and YouTube topped the list at 30%, followed by Facebook (27%), and Instagram (22%).
The Rise of Social Commerce
Even those who aren't actually completing a purchase on social media are still turning to the platforms for gift ideas.
"Social media is a huge awareness medium for brands and marketers," explained social media analyst Greg Sterling, co-founder of Near Media. "It has an impact on purchases regardless of whether these sites get credit."
Many online shoppers are still actively looking for gifts on Google or Amazon, rather than social media where discovery tends to be more serendipitous, added Sterling.
"While the majority of people online use social media in one form or another, younger users are more inclined to use it actively for holiday shopping," he suggested. "Some younger users have effectively dropped Google for TikTok in certain purchase categories. Generally, it's not a zero-sum thing, however. People use many sites for shopping inspiration and research."
Then there is the issue of social commerce.
"While Meta has pulled back, TikTok is forging ahead," Sterling continued. "And we should see direct buying on social media sites continue to grow, albeit unevenly in the US. Eventually, most adults will use social media as part of their active shopping in some form."
