How Does Social Media Influence Consumers?
Given people’s dedication to social media in today’s world—crossing the barriers of age, class, race or any other demographic—and the amount of time people spend on these platforms, it stands to reason that social media can have a significant impact on the purchasing practices of consumers. As marketing consultant, Linda Ray, has pointed out, “Word of mouth has always been an effective marketing tool for business…that word of mouth is just as likely to come from a social media website or smartphone application as from a neighbor across the fence.” (SmallBusinessChronicle). Turning to statistics, it has been widely reported that a majority of social media users consistently research products of interest online, with 43% of consumers using social media when researching what to purchase.
The input of influencers also play a big part in persuading consumers to make purchases, often in the form of endorsements from well-known people who share their experiences on Facebook, Twitter, Instagram, and other social media platforms. This type of influence is an important factor, but not the only one to consider. A simple, and quite practical option can be seen in the markedly increased buying speed possible on social media; people tend to make quicker decisions when they can click on a link at a site to make a purchase. Another way that companies use social media to influence consumers is through telling stories and sharing intimate details about their brands. This creates an atmosphere that can involve potential customers, making them feel a direct sense of connection. And, as different social media platforms expand and proliferate, marketers have the unique opportunity of reaching diverse populations with their messages in ways that were simply unheard of in past eras.
Social Media Targeting Methods
No matter what vehicles a company may employ in an effort to find an optimal consumer base, it is important to reach those most interested in what is being offered. This is where targeting enters the picture. Advertising is directed at real people, and these people’s needs and desires can be identified in various ways. One effective method is the Facebook Pixel, a piece of code that can be put in the end of a website, providing a tag that is then used to drive and decode metrics connected to the platform. Marketers need people to return to their sites; the Facebook Pixel accomplishes this by retargeting. In the words of online marketer Ted Vrountas, “In a time when people are busier than ever, you want to stay top-of-mind with an ad that says ‘Hey, remember that course you were thinking about purchasing? Come check it out again.’ That’s retargeting.” (Instapage)
List targeting, also referred to as audience targeting, is a technique where lists of people are automatically compiled, based on their social media activity, and categorized by their interests and demographics. These lists consist of CSV or TXT files that includes specific identifiers. Another tool, referred to as lookalike audience targeting, involves connecting groups of social network members to other groups who share similar qualities. By utilizing user profiles to associate the characteristics of an existing group with a new one, it becomes possible for marketers to extend their reach by identifying entire groups of potential consumers. This is often accomplished by creating lookalike seeds, within a limited sized, uniform audience.
Interest-based targeting is a key component of social media advertising, enabling marketers to connect with consumers in ways that feel personalized, based on their particular interests and activities. As observed by marketing expert Sophie Lundberg, “By revealing the interests of your audience and using this information to target them where they’re present and susceptible to your brand message, you can create a marketing strategy built on a solid foundation of reliable insight.” (Global Web Index)
Examples of Social Media’s Influence on Purchasing Decisions
Social media can have both positive and negative impacts on a consumer’s purchasing decision. In 2015, Vitalife caused quite a stir on social media platforms. According to claims that went viral, their pet treats were made of low quality ingredients that were supposedly linked to the deaths of a number of dogs. Groups of people came together to ban Vitalife, vowing never to purchase the product, and convincing others to join the boycott. Even though these rumors remained unsubstantiated, they created a negative brand image and ultimately had a disastrous impact on sales, even years after the debacle.
In a similar manner, companies can greatly benefit from positive opinions voiced on social media. This was certainly the case for designer, Sergio Hudson, during the recent presidential inauguration of Joe Biden. Michele Obama’s outfit became one of the most talked-about topics of the day, trending on both Instagram and Twitter. This was great news for Hudson, since it attracted the attention of millions of new consumers to his site, many of whom ended up making purchases. Unavoidably, an influx of copycats also appeared, attempting to replicate the former First Lady’s outfit, selling similar designs at a fraction of the cost.
From viral posts to online reviews and product positioning, both consumers and companies have the power to sway others in their purchasing decisions. This is especially true during the current COVID-19 pandemic, when many people have been forced to shop online, rather than in brick-and-mortar stores. More than ever before, companies must do whatever they can to maintain a positive brand image; this necessitates promoting their products through social media ad campaigns, and utilizing targeted advertising techniques, while at the same time making their products easier to find and purchase online. “As the number of internet users increases and tech companies develop more ways to integrate the online world into shopping, online retail is expected to grow exponentially. Logically, many consumers buying decisions are made online as well, and where do people spend most of their online time—on social media.” —Aleh Barysevich (SearchEngineWatch.com)
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OTIS KOPP
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