NEW YORK, NY / ACCESSWIRE / July 15, 2024 / Social media is more than just a way to stay connected with friends. Platforms like Instagram and Twitter offer opportunities to connect with people all over the world, discover the newest trends, and learn about niche topics. They also offer users a peek into the lavish lives of influencers and celebrities. Accessing so much information can be fun and exciting, but social media may encourage overspending without healthy habits (or the guidance of a financial advisor). Understanding how social media influences spending habits can help users develop healthy behaviors instead.
Influencer marketing
Businesses across industries, from cosmetics to fast food, use influencer marketing to find new customers. Influencers often build significant audiences on social media by appearing authentic and relatable or luxurious and aspirational. Followers may be tempted to buy the products they promote because they trust the influencer's judgment or hope to emulate their apparently glamorous lifestyle. Before buying a product that an influencer has advertised, it's a good idea to conduct some additional research by reading or watching unsponsored reviews.
Impulse buying
Social media may offer frictionless ways to shop, from clicking an affiliate link to ordering directly from a social media app. While this interface is convenient, it also makes impulsive spending easier by removing steps between seeing and purchasing a product. Social media users can limit this type of impulse spending by opting out of saving credit or debit card information on their social media accounts. Often, the added time and effort it takes to grab a card and enter card info manually slows would-be shoppers down enough to consider their purchases.
Comparison
One of the most appealing features of social media is the opportunity to look into the lives of friends, peers, and celebrities. While these slices of people's lives are often fun or informative, they can also leave social media users feeling left out-from experiences and products, too. This feeling is sometimes called the "fear of missing out" or FOMO.
For example, a person may overspend at a fancy new restaurant after seeing friends post about ordering a delicious meal there. Spending too much may seem better than missing out on an experience. However, it's important to remember that social media doesn't tell the whole story. What works for one person may not work for everyone.
Targeted ads
Anyone who spends time online has likely noticed that advertisements seem to read minds, offering exactly the right product at exactly the right time. Of course, this phenomenon is actually the result of targeted ads. Algorithms provide customized ads based on a user's search and shopping data. This type of advertising can help people find items they need. However, targeted ads also contribute to impulse buying by bombarding social media users with advertisements that have been fine-tuned to their interests. Social media platforms may allow users to opt out of targeted ads, which could limit unnecessary purchases. Before buying something from a targeted ad, users should always research the product and its competitors.
Social media's impact on spending isn't all bad-it can be a great way to discover new products and access honest reviews from real people. However, people should still take steps to protect themselves and their wallets from social media's potential negative effects. Some steps could include setting a strict budget for social media spending, limiting social media use, or stepping away altogether for a time.
CONTACT:
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com
SOURCE: Northwestern Mutual
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