TIKTOK MADE ME BUY IT! WHY SOCIAL MEDIA SEDUCES US TO SPEND
Droves of Australians say social media like TikTok has seduced them to spend, according to new research by Finder, Australia’s most visited comparison site.
A Finder survey revealed that two in five people - or 40% - have bought something online after seeing it on social media – equivalent to 8.4 million people.
The average social media shopper spent $420 over the past year, adding up to $3.5 billion nationally.
Social media has driven Aussies to purchase everything from clothing (25%), to beauty products (16%), electronics (15%), and accessories (12%).
Facebook (61%), Instagram (52%), and TikTok (40%), are the top social media players when it comes to influencing Aussies to buy something.
Rebecca Pike, the money expert at Finder, said social media platforms are increasingly shaping how people spend their money.
“With advanced algorithms and data-driven strategies, advertisements are now more personalised than ever before," she said “Have you ever mentioned a product in conversation and then immediately seen an ad for it the next time you opened your phone?
“By analysing users’ behaviours, interests, and online activity, these platforms seamlessly present tailored content that aligns with individual preferences.”
It is no surprise that digital natives Gen Z were the most likely to have been influenced by these ads. More than 2 in 3 (68%) admit to buying an item they saw on social media, followed by more than half (52%) of millennials and 29% of Gen X.
Baby boomers were the least likely to be influenced – only 15% had bought something after seeing it on social media.
Of those who were plied by their socials to splash out, the average Gen X spent $400 in the last year, compared to Gen Z ($293).
While men (36%) were less likely to buy from social media than women (44%), they spent almost double ($553) that of women ($322).
Ms Pike said it’s important to balance the “treat yourself” culture with financial well-being.
“There’s absolutely nothing wrong with indulging in small luxuries every now and then – after all, treating yourself can be a great way to boost morale.
“But these splurges should come with a sense of balance and awareness, especially in today’s climate.
“Ask yourself whether you can truly afford the item and whether you will feel good about the decision later.
“That clothing or gadget might feel irresistible at the moment, but a pattern of these purchases can add up quickly and create financial strain in the long run.”
Ms Pike encouraged Australians to be mindful of scams when purchasing items through social media.
“Scammers often exploit social media platforms by creating fake advertisements or accounts to deceive unsuspecting consumers.
“It’s more important than ever to verify the authenticity of sellers, review feedback or ratings, and be cautious of deals that appear too good to be true,” Ms Pike said.
How to limit impulse buying:
The 24-hour rule: Before making an unplanned purchase, wait 24 hours. This creates a buffer zone between the initial desire and buying. Often, the urge will subside, saving you money.
"Want" vs. "Need" list: Keep a running list of items you genuinely need. When tempted by something new, check your list – anything you don’t need is optional.
Unsubscribe from tempting emails and alerts: Retailers excel at triggering impulse buys through emails and targeted ads. Unsubscribe from mailing lists that tempt you with flashy sales and products you don't need.
Reward yourself: If you decide not to make a purchase, put the money you would have spent into a high-interest savings account. That way, the money is really working hard for you.
