Business

Instagram influences millennial online shopping, poll shows

Instagram is a social networking app made for sharing photos and videos from a smartphone.
Instagram is a social networking app made for sharing photos and videos from a smartphone.

Instagram is the most influential app when it comes to online shopping decisions among millennials, according to a poll.

LendEDU, an online marketplace for student loan refinancing, on Tuesday released the results of a poll asking 1,731 millennials, “What social media platform has influenced your online shopping the most?”

With 52.9 percent, Instagram proved more influential than Facebook, Twitter and Snapchat combined.

“I was shocked to see Snapchat receiving only 5 percent,” LendEDU author Mike Brown wrote in an email. “With questions surrounding their revenue model, marketing was supposed to be one of the main ways Snapchat brought in profit, but it appears to be ineffective.”

Facebook was the runner up, with 32.6 percent, but it was the clear winner as owner of Instagram. With the two most influential social media apps, Brown said, Facebook stock owners can be assured of the company’s ability to effectively advertise to millennials.

The social media site was one of the first to utilize the sponsored advertisements strategy and found even better results when it extended the strategy to Instagram.

By analyzing their users’ interests and leading them to sponsored products, the social media applications are taking advantage of this trending form of advertisement.

In 2016, digital advertising expenditures surpassed TV for the first time, according to a report by eMarketer, and with mobile advertising accounting for 70 percent of digital, it’s predicted to surpass TV in 2019. In combination with the increase of millennials, these numbers are only expected to grow.

According to U.S. Census Bureau data, 75.4 million millennials are living today and are the largest living generation on earth, surpassing the 74.9 million baby boomers. They represent a substantial portion of the global population and have become the most desired demographic among companies.

As mobile advertisers continue to attract these 20- and 30-year-olds through apps like Facebook and Instagram, their disposable income is only expected to grow. Analysts expect that the combination of growth in mobile advertisement and growth in millennials predicts a bright future for the business of online shopping through social media.

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