Gen Z Is Fighting Overconsumption on Social Media

Many Gen Z and Millennial consumers have said that in the face of a fight against overconsumption, social media advertising is “giving them the ick.”

In a recent survey conducted by The Harris Poll on behalf of Credit Karma, researchers asked American consumers about their sentiment toward shopping across social media platforms. While many consumers have cited social media as a reason for increased shopping habits, many reported a shift and said they feel the opposite.

For both consumer behaviors, social media, said Courtney Alev, consumer financial advocate at Credit Karma, has been a catalyst.

“In many cases, social media can be a catalyst for poor financial habits or feelings of inadequacy, while in other cases, it can spur healthy financial trends and a sense of community,” said Alev. “[These] social media platforms do a very good job at driving consumers to overspend when scrolling their apps, especially considering how easy it is to purchase something in just a few clicks.”

According to Credit Karma’s data, nearly 40 percent of Americans have purchased products advertised on social media in the last year with 23 percent admitting they have charged at least $1,000 to credit when making these purchases. The temptation to shop on these platforms, they said, is elevated by targeted ads and influencer promotions. As previously reported by WWD, shopping addictions led by social media had caused many Gen Z and Millennial consumers to take on debt even though they are anxious about their finances.

In contrast, many consumers (69 percent of all consumers and 88 percent of Gen Z) told the company they have been “de-influenced,” meaning they have decided not to purchase items that they see advertised on social media.

While consumers cited a range of reasons for being de-influenced, Alev explained that “American consumers being de-influenced to purchase items they see on places like TikTok and Instagram shows the level of nuance that exists in the social media space, particularly as it relates to consumer behaviors driven by these platforms.”

The top three reasons for this behavior across all generations is a distrust of influencers on social media who push products (32 percent). Looking specifically at Gen Z respondents, the top reason for being de-influenced is “unhealthy levels of overconsumption that social media product promotions drive” (38 percent). The authors of the report said that the finding is not surprising given that the young generation is also known for its eco-conscious behavior.

Other top reasons for quitting social media shopping were seeing too many counterfeit products, feeling overwhelmed by how many advertised products are seen on social media, dislike for buying the products that “everyone else has” and negative experiences with products purchased through social media in the past.