Creator-focused shopping platform LTK has revealed that social media is changing the way people shop online and in stores.
According to a report titled “The State of Creator-Guided Shopping” released by the company in January 2023, as Gen Z is increasingly shopping with social media, video Content is selling more than static content, indicating that creators and marketers are increasingly focusing on the format.
The 33-page report includes LTK’s December 2022 online survey of 1,018 Americans by generation and household income, as well as LTK’s own insights into brands, creators, and shoppers on the platform. The results of analysis conducted in cooperation with customers are published.
Ally Anderson, director of brand partnership strategy and insights at LTK, told Insider that he expects creators to influence every aspect of consumer buying behavior in 2023.
“There’s a lot of debate around this big and strong topic, but the message is that creators should be the pillars of brands and retailers, and that will continue to be the case,” Anderson said.
Here are six key takeaways from the LTK report to watch in 2023.
1. Rapid growth of short video content
Video content is surpassing static content as a sales tool. According to LTK research, video content is growing three times more year-over-year than static content in terms of gross merchandise value (GMV). It also found that 66% of respondents prefer watching videos over stills, and 57% watch influencer videos on social media.
Marketers using the LTK platform are particularly focused on short videos, and short video measures through collaboration between brands and creators will increase fivefold in 2022 compared to the previous year.
2. If you want to meet Gen Z, you have to go where Gen Z is.
According to the survey, 100% of Gen Z shoppers have shopped online, and 79% of them have used social media to shop. In doing so, we hope to get some tips, recommendations, and deals from creators and their content.
Instagram is the most used platform for shopping purposes, followed by TikTok and YouTube.
Speaking of Gen Z influencers, Anderson said:
“Brands shouldn’t think of working with Gen Z as a one-off strategy. They should think, ‘How do we inspire consumers at every moment through content?'”
3. Consumers buy products recommended by creators in stores
Influencers are driving consumers to buy recommended products in stores as well as online. 42% of millennials and 44% of Gen Z say they have been to a store to purchase a creator-recommended product.
According to Anderson, this fact shows that creators’ online posts lead to purchases both online and offline, and can be an efficient marketing channel for brands.
4. Gen Z and millennials want to shop like their favorite influencers
Gen Z and millennials ranked influencer content, branded content, and user-generated content (UGC) as the most compelling triggers for purchasing decisions.
Anderson says influencer content will become more prominent not only in brands’ social media channels, but also in real-life tangible ads and in-store pops.
5. Gen Z and millennials trust product information provided by creators
According to the survey, Gen Z and millennials place more emphasis on TikTok and Instagram than brand sites when searching for product information and product recommendations.
In other words, brands need to think about how to communicate product information through influencers to reach these younger demographics.
6. Creator data will be used for overall marketing decision-making
Creator data influences brand decisions such as product selection, inventory availability, and long-term consumer sentiment measurement. As such, brands will track more granular creator data through product-level data, trend reports, brand impact reports and benchmarking, LTK said in its report.
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(Edited by Ayuko Tokiwa)
Source: BusinessInsider
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