Press Release: STUDY: Nearly 60% of Gen Zs And Millennials Have Bought a Product on Social Media Using ‘Buy Now, Pay Later’

Study also finds Instagram and TikTok are the most likely to influence purchase decisions for Gen Zs

 

New York, NY (September 29th, 2021) StitcherAds, the leading platform for ad solutions and shopping experiences that drive incremental sales on Facebook, Instagram, Pinterest, and Snapchat, today announced the results of a new commissioned study on how social media advertising influences purchasing habits across generations, analyzing 500 respondents, ages 18 and over. 

Key findings include: Gen Z and Millennials are the largest drivers of the push for ‘Buy Now Pay Later” options in ads; promo codes and coupons don’t lead to more conversions for Baby Boomers; Baby Boomers trust social media advertisements the least; and much more.

 

Gen Z and Millennials Drive the Push for ‘Buy Now, Pay Later’ on Social 

When asked if they’ve ever purchased a product that featured a ‘Buy Now, Pay Later’ option (BNPL) in a social ad, over half of Millennials (60%) Gen Zs (57%) said “yes,” versus 37% of Gen X and 19% of Baby Boomers.

“Recently, we’ve seen ‘Buy Now, Pay Later’ options grow in popularity as a way to keep up with the rapid shift to online shopping during the pandemic,” said Bryan Cano, Director of Strategy at StitcherAds. “Our analysis discovered that consumers of all generations use BNPL tools, but Millennial and Gen Z shoppers are doing so at much higher rates. This is likely because BNPL provides younger consumers – whose cash flow tends to be more limited – better financial flexibility, especially for larger-ticket items.” 

 

Millennials Want All the Details in their Social Ads 

Per the study, nearly 60% of Millennials (58%) prefer to see all of the details about a new product or brand in an ad, and don’t want to have to go to a company’s website to learn more. 

“The way Millennials consume information is very different,” added Cano. “They are analytical and they want access to information on-demand. This also speaks to the need for retailers to work more closely with social platforms since clicking out to their own dedicated sites can seem cumbersome.

56% of Gen X agree with Millennials, while Gen Z are split on the topic, with no preference either way. However, Baby Boomers (55%) prefer to see less in an ad, and would like to discover more about the product or brand being advertised by visiting the company’s website. 

 

Instagram Most Likely to Influence Purchase Decisions for Gen Z

59% of Gen Zs shared that Instagram’s advertising influences their purchasing decisions the most, followed by TikTok (57%) and Facebook (36%), and Twitter (29%). For the best ad experience, Gen Z touted Instagram (59%), followed by TikTok (48%), then Twitter (34%). 

 

Baby Boomers Do NOT Try New Products Based On Social Ads 

63% of Millennials, 56% of Gen Xs and 52% of Gen Zs said they’ve tried a new brand or product based on an ad  they saw on social media in the past month. Baby Boomers, on the other hand, aren’t as influenced, with only 33% responding that they’ve tried a new brand or product based on a social ad in the past month.

“Millennials are the most likely to try a new brand or product based on social ads seen recently,” said Cano. “Boomers are the least likely, but still — one-third said they’ve discovered a new brand or product after seeing an ad, which is above and beyond ROI from other channels.” 

 

Surprise – Promo Codes and Coupons Key Conversion Drivers

When asked if they were more likely to purchase something based on an ad if it featured a promo code or coupon, 96% of Millennials and Gen X were very likely to do so. 94% of Baby Boomers agreed, along with 89% of Gen Zers.  

 

Almost Half Of Millennials Will Recommend Products Based on a Social Ad 

Just 13% of Baby Boomers and 29% of Gen X are likely to recommend a product to a friend or family member based on an ad that they saw on social media. In contrast, almost half of (46%) of the Millennials and one-third (34%) of Gen Zs shared they are likely to make such a recommendation. 

“Social ads have strong word of mouth among younger, digital-first audiences,” said Cano. 

 

Video Ads Conqueror Over All Other Forms Of Social Ads 

Millennials (79%), Gen Xs (71%), and Gen Zs (59%),  are more likely to click on a personalized ad on mobile versus desktop. Meanwhile, the majority (53%) of Baby Boomers said they’re more likely to click on a personalized ad via desktop. 

All generations (Baby Boomers 48%, Gen X 59%, Millennials 52%, Gen Z 63%) agree they’re more likely to click on a video ad over any other format. 

“Historically, advertisers have considered video a top-of-funnel tactic,” said Cano. “Now, though, more marketers are using video for direct response and brand awareness. New ad formats across Facebook, YouTube, Twitter, and other social apps, allow marketers to collapse the funnel, giving users a frictionless experience from discovery to conversion.”

 

StitcherAds technology helps advertisers to scale full-funnel performance marketing campaigns on Facebook, Instagram, Pinterest, and Snapchat. The company has empowered some of the largest advertisers worldwide using data-fueled automation to drive sales online and in-store. 

 

Learn more about StitcherAds here: https://stitcherads.com/ 

Download the report here: https://info.stitcherads.com/2022socialadpreview

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About StitcherAds 

 

Founded in 2009, StitcherAds helps advertisers and agencies scale full-funnel performance marketing campaigns on Facebook, Instagram, Snapchat, Pinterest, and TikTok. In addition to being an official Facebook Marketing Partner, StitcherAds is widely recognized as a foremost Retail and Ecommerce Expert, empowering the world’s largest advertisers through data-fueled automation to increase the revenue impact of their ad spend. The company works on a hybrid service model, onboarding clients from fully managed service to self-serve to ensure long-term success with their software. As the first partner to launch dynamic ads and dynamic ads for travel on Facebook, StitcherAds has been a leader in both speed and achievement in direct response innovation. For more information about StitcherAds, please go to www.stitcherads.com

 

Media Contact:

Colleen O’Connor

Crenshaw Communications for StitcherAds

colleen@crenshawcomm.com