New research from GoDaddy suggests that the impact of word-of-mouth recommendations is diminishing among younger consumers, with influencers gaining more trust from Gen Z consumers. According to a recent GoDaddy survey of 1,000 US consumers, Gen Z is increasingly looking to influencers over friends , family, and colleagues to make purchasing decisions, signaling a shift in how businesses can effectively reach this audience.
GoDaddy’s data shows a clear difference between Gen Z and Millennial shopping behavior, especially on social media. About 41% of Gen Z respondents trust a product or service recommended by an influencer over traditional business ads, while 46% of Millennials still place the highest trust in ads from businesses.
The Influence of Social Media on Gen Z and Millennials
The survey highlighted that Gen Z and Millennials value different sources when deciding what to buy on social media:
Gen Z Influence Ratings:
- Promoter posts (57%)
- Posts from the business they follow (54%)
- An ad in their feed (49%)
- Referral from a friend (40%)
Millennial Influence Ratings:
- Posts from the business they follow (57%)
- An ad in their feed (51%)
- Referral from a friend (48%)
- Influencer posts (44%)
Alycia Leno, Director of Marketing at GoDaddy, commented on these findings, saying, “Knowing that Gen Z consumers trust social media ads more than recommendations from friends is a game changer if this is your target audience. Understanding how each generation sells, especially on social media, will empower small business owners to rethink their strategies. “
The Growing Role of Social Media in Product Discovery
The study also revealed that social media ads remain effective for both Gen Z and Millennial consumers:
- 55% of Gen Z and 47% of Millennials regularly use social media to discover new products.
- More than half of Gen Z (53%) and Millennials (57%) take action on ads served in their social feeds at least weekly.
- Nearly 3 in 10 Gen Z (28%) and Millennials (32%) find social media ads useful for learning about new products or businesses.
Photo: Envato
