August 21, 2024

Decoding Gen Z Shopping Habits in 2024:

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brands must adapt to Gen Z's digital-first approach and values-driven buying behavior to effectively reach and engage this influential generation.

Understanding the shopping habits of different generations is crucial for SEO Expert Riverside, CA, but deciphering the preferences of Gen Z presents a unique challenge. This generation, born between 1997 and 2006, has distinct shopping behaviors influenced by their digital upbringing. To help you navigate the Gen Z shopping landscape, we surveyed thousands of U.S. consumers across all generations to learn about their shopping habits, media consumption, and the latest trends they follow.

Gen Z Shopping Habits in 2024 (Ages 18-24)

Social Media: The Epicenter of Product Discovery

Social media is a cornerstone of Gen Z’s shopping habits. According to our latest survey, 40% of Gen Z has discovered new products on social media in the past three months, and 41% say it’s their primary source for product discovery. This isn’t surprising given that 93% of Gen Z use social media, spending an average of 4 hours and 20 minutes per day on these platforms.

The top platforms for product discovery among Gen Z are YouTube, Instagram, and TikTok. While TikTok is the most used app overall due to its engaging short-form videos and powerful algorithms, YouTube remains particularly popular among Gen Z men. Conversely, TikTok and Instagram dominate among Gen Z women.

Preferred Content and Influencer Impact

Gen Z has a strong preference for discovering products through short-form videos and social media marketplaces. Nearly half (48%) prefer short-form videos, and one in four (25%) looks to influencers for product recommendations. This generation is highly influenced by social media personalities, with 27% making a purchase based on an influencer’s recommendation in the past three months—the highest percentage of any age group.

Investing in these channels is vital, as they not only drive high engagement but also offer the highest return on investment (ROI) among current marketing trends. Social selling is another powerful trend, with 43% of Gen Z having bought a product directly on a social media app in the past three months. Our Instagram Marketing Report details the immense opportunities for social selling on this platform, supported by data-backed strategies for success.

YouTube Ads and SEO: Key Channels for Reaching Gen Z

While social media reigns supreme, YouTube Ads are also effective, especially among Gen Z men. In the past three months, 21% of Gen Z discovered new products through YouTube Ads, with 19% naming it their preferred discovery method. However, these ads still lag behind social media in overall influence.

Search engine optimization (SEO) remains relevant for Gen Z, with 28% finding new products through online searches recently. Most of these searches are conducted on mobile devices, underscoring the importance of optimizing websites for mobile use. For more on effective SEO strategies, consult our Web Traffic & Analytics Report.

Retail and Streaming Services: Still Relevant

Though digital channels dominate, physical retail stores are not entirely obsolete. About 21% of Gen Z discovered new products in retail stores in the past three months, and 14% still prefer in-store discovery. However, streaming services are more influential, with 36% discovering new products on film/TV show streaming services and 22% on music streaming services like Spotify. In contrast, traditional cable TV ads are less effective, with fewer than 20% of Gen Z discovering new products this way.

Social Responsibility and Purchase Decisions

Gen Z’s social consciousness significantly influences their purchasing decisions. This generation expects companies to take a stand on social issues, with 40% believing that brands should address social concerns. Key issues include racial justice (36%), climate change (36%), gender inequality (33%), and LGBTQ+ rights (17%).

This commitment to social responsibility translates into purchasing behavior. For instance, 49% of Gen Z have chosen products based on the brand being owned by a person of color in the past three months, and 43% have favored woman-owned brands. Furthermore, 84% are more likely to buy from companies that treat their employees well, and 60% prefer brands actively reducing their environmental impact.

Key Factors in Gen Z’s Purchase Decisions

When it comes to purchasing, price, quality, and the look and feel of products are paramount. However, other factors such as influencer recommendations, charitable donations, and community engagement also play crucial roles. Notably, 55% of Gen Z value influencer recommendations over those from friends and family (24%).

Purchasing Preferences and Payment Models

Despite their digital affinity, 55% of Gen Zers still prefer in-store shopping. Online channels are also popular, with 50% favoring online retailers like Amazon and 37% preferring direct purchases from company websites. Social media and mobile apps are also significant, with 23% and 22% of Gen Zers preferring these channels, respectively.

In terms of payment, while 47% of Gen Z have subscribed to a physical product service recently, they generally prefer to buy products at full price as needed.

Conclusion

Understanding Gen Z’s shopping habits requires recognizing their unique digital preferences and social consciousness. Social media, particularly short-form videos and influencer marketing with digital marketing agency Murreitta, plays a critical role in product discovery and purchase decisions. While traditional retail and advertising channels still hold some relevance, brands must adapt to Gen Z’s digital-first approach and values-driven buying behavior to effectively reach and engage this influential generation.