Word-of-mouth advertising, long considered a cornerstone for small businesses, may be losing its grip on younger generations. Fresh data from GoDaddy paints a picture of Gen Z turning their trust to influencers rather than friends, family, or colleagues when it comes to product recommendations.
The study, conducted in September among 1,000 U.S. consumers, highlights a generational divide. While both Gen Z and Millennials approach shopping differently from older consumers, they don’t follow the same path. Gen Z, in particular, shows a marked preference for influencer posts over ads or personal recommendations from their social circle.
GoDaddy’s survey reveals that 41% of Gen Z consumers are more likely to trust a product recommended by an influencer compared to just 36% who trust an ad directly from a business. For Millennials, however, the dynamic shifts—46% trust business ads more than influencer endorsements.
When asked about their likelihood of purchasing products based on social media posts, the findings became even more striking:
- Gen Z Preferences:
- Influencer’s post: 57%
- Business post: 54%
- Ads in feed: 49%
- Friend’s post: 40%
- Millennial Preferences:
- Business post: 57%
- Ads in feed: 51%
- Friend’s post: 48%
- Influencer’s post: 44%
These numbers show a clear trend: younger consumers are putting less stock in their friends’ opinions and leaning more on influencers. Alycia Leno, GoDaddy’s director of marketing, weighed in: “Knowing that Gen Z consumers value social media ads over recommendations from friends is a game-changer. For small businesses targeting this audience, it’s crucial to adapt their strategies and maximize their social media marketing efforts.”
The shift doesn’t just stop at trust levels. Both Gen Z and Millennials are deeply engaged with social media as a shopping platform:
- A majority of Gen Z (55%) and Millennials (47%) regularly use social media to discover products.
- Over half of both groups (53% of Gen Z and 57% of Millennials) engage with ads that prompt them to take action weekly.
- Nearly 30% of both generations find social media ads beneficial for learning about new products or businesses.
For small business owners, these insights emphasize the need for a deep understanding of their audience’s habits. Ignoring these shifts could mean wasted time and money. By tailoring strategies to fit how each generation prefers to shop online, entrepreneurs can zero in on their target market and get results faster.
To assist businesses in this evolving landscape, GoDaddy offers Digital Marketing tools like GoDaddy Airo™ and GoDaddy Studio. These tools enable businesses to create AI-generated content, manage social posts, design digital ads, and access detailed analytics—all without breaking the bank.
For more information about GoDaddy’s products and services, visit www.GoDaddy.com.