Study: Social networks provide consumers with concrete incentives to buy

Of 18 to 34-year-olds, 70 percent already state that social media content influences their purchasing decisions. Both original content and advertising measures have a similar effect. This is the conclusion of the "Connected Commerce 2015" study by digital agency DigitasLBi, for which over 1000 German consumers were surveyed on their purchasing behavior by market research institute IFOP.

"Brands should trust in the power of social networks. Consumers can now be converted into brand fans and loyal buyers not only through various advertising measures, but also through a successful brand presence in social networks. Young people in particular show a high level of interest in the digital presence of brands and allow their purchasing behavior to be positively influenced by specific purchase incentives. The interplay between content marketing and digital advertising can provide a major boost if advertisers take advantage of this through intelligent campaigns," says Anke Herbener, CEO of DigitasLBi in Germany and Switzerland.

More than half of German consumers (51.3%) generally allow their purchasing decisions to be influenced by information on social networks. For these consumers, Facebook (29.9%) and YouTube (26.5%) are the undisputed leaders in influencing purchasing decisions. The content on Google+ generates an incentive to buy in around 10 percent of cases. All other social networks hardly play a role: Twitter and Instagram are far behind with only four percent each, followed by Xing with three percent, Pinterest with two percent and LinkedIn and Tumblr with one percent each.

The most important factors for a positive purchase decision

The purchase decision can be influenced in various ways within a social network. According to the DigitasLBi study, traditional marketing measures still provide the greatest incentive to buy. These include classic advertising content (34%) as well as targeted promotions and campaigns (31%). Status messages from friends and acquaintances help to positively influence consumers' purchasing decisions in 29% of cases. These status messages include a variety of content from companies, which is then disseminated further by their own circle of friends. Investing in a brand presence in the form of their own fan page convinces 23% of consumers to buy a product if good content is displayed there by the company. As many as 17% of consumers trust the content and shared recommendations of advocates and experts, known as influencers.

In the detailed demographic analysis, the study shows that women are significantly influenced in their purchasing behavior by classic advertising content and status messages from friends. Men, on the other hand, are seduced by promotions and advertising campaigns. Younger consumers are generally encouraged to buy products or services by the content in status messages from friends.

One in four shows willingness to buy directly via social networks

The willingness to make online purchases directly via a social media platform is generally present among the consumers surveyed. One in four consumers (28%) has already made a purchase via social networks. This includes both direct purchases of premium subscriptions and product purchases via redirects to external online stores. Facebook (10 percent), YouTube (6 percent) and Google+ (5 percent) are far ahead of purchases via Twitter and Xing (2 percent each). The portals Instagram, Pinterest, Tumblr and LinkedIn do not play a role in the direct purchase of products among German consumers.

As expected, sharing content is one of the most important processes in social networks. In the case of product purchases, almost one in three consumers (28%) inform their friends by actively sharing this as a status message on social media. Among younger consumers in the 18 to 34 age group, this figure reaches around 41%.

Consumers inform their friends about their purchases

The main reason given by 42% of consumers for sharing is that they simply want to inform their friends about the purchase. A further 38% want to spread the word about an offer or bargain among their friends. For 35 percent, a sense of pride prevails, while 20 percent hope to increase their chances of winning additional vouchers, discounts and loyalty points by sharing. 13% even want to impress their friends with the products. This last reason in particular is much more pronounced among men than women.

However, those who have not yet shared product purchases on social networks may be encouraged to do so by the prospect of vouchers, discounts and loyalty points. 28% of consumers who do not share photos or status messages about their purchases see these rewards as a motivating factor for sharing. A further 19 percent would share information about a bargain and 10 percent see sharing purely to inform their friends as a reason. Impressing friends or being proud of the purchase play a much smaller role for the majority of consumers. Overall, all reasons for sharing product purchases on social networks are more pronounced among young people.

Methodological notes

The "Connected Commerce 2015" study by DigitasLBi was conducted in a total of 17 countries, including Australia, Belgium, China, Denmark, France, Germany, Great Britain, Hong Kong, India, Italy, Japan, the Netherlands, Singapore, Spain, Sweden, the United Arab Emirates and the USA. The current survey was conducted by the French opinion and market research institute IFOP with a sample size of 1,000 Internet users aged 18 and over in each country. Further details on the study can be found at Digitaslbi.com

About DigitasLBi

DigitasLBi is a global marketing and technology agency that supports companies in their continuous development in the digital age. At 44 locations in 26 countries, more than 7,000 digital experts work to offer users tangible added value in their everyday lives through the unique combination of strategy, creativity, media and technology. In Germany and Switzerland, around 180 experts work in Cologne, Munich, Hamburg, Berlin and Zurich under the leadership of CEO Anke Herbener. The services range from corporate strategy consulting and branding to content development and final real-time distribution.