With 70 per cent of Singaporeans active on social media, it’s no surprise that there have been reports that social media has been driving a consumer culture.
In an Allianz Life Insurance Company survey, nearly 90 per cent of millennial respondents say social media has created a tendency to compare their own wealth or lifestyle to that of their peers.
Another interesting point is that 60 per cent of millennials admit to feeling inadequate about their own life. However, what further substantiates the belief that social media can in fact make its users generate money, is that Instagram is gradually rolling out Instagram Shopping.
We go behind what could potentially be causing consumers to spend their hard earned money through social media below:
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The Fear Of Missing Out. Some of us are probably guilty of this, regardless of whether it is done consciously or subconsciously. That being said, it pays to understand that overspending is not just about being enticed by flashy sales ads or the latest trends driven by celebrities. It is much closer to home.
After all, social media gives us first hand exclusives to everyone’s lives. Many people overspend because they want to measure up to the standards set by their friends. They may feel anxious, dissatisfied with their lives, or just plain jealous about what their friends have. There is a need for their humble and average lifestyle to measure up with the extravagant and luxuriant habits of others.
These days, with Instagram’s algorithm catering ads and accounts to your preferences, it’s easy for you to subconsciously fall prey to impulse purchases.
Some accounts link directly to their online stores making the whole shopping experience seamless; working to their advantage.
If you’re looking to stop this vicious cycle, consider removing your card from the autofill function and adopt the habit of sleeping on a purchasing decision. If you’re still thinking about the item the next day (or even two days after), it’s worth getting!
Messages Are More Effective When Repeated
Also known as “effective frequency” the method of repeating a message over and over again until it takes effect is something generally practiced in the advertising and marketing field.
However, with the age of social media, advertisers rely on influencers to repeat their messages over and over again. Often times, advertisers strike deals with influencers to get to commit to posting multiple times about a product — playing into their whole effective frequency strategy.
Advertisers might also consider engaging several influencers to promote their products during a certain time period. When plenty of people promote a certain product at one time, it encourages curiosity in a consumer and makes them remember their product, another method of marketing.
This article first appeared as Social Media Usage In Singapore And How It Causes You To Overspend (2018 Update) on Money Kinetics: Singapore’s definitive guide to financial literacy. Money Kinetics helps Singaporeans compare and evaluate loans, deals, cards and guide them to make their money work for them.
The article has been edited for concision and style with the permission of Money Kinetics.