Does creator-generated content influence shoppers' purchases?
What do shoppers think of creator-generated content and how does it influence their purchases?
Nearly half of Americans (48%) have purchased a product they saw featured in creator-generated content — sometimes also called influencer content — on an entertainment app or social media platform. The findings are from a new consumer sentiment survey commissioned by NCSolutions, a company that improves advertising effectiveness for the consumer packaged goods ecosystem.
Two-thirds or 66% of Generation Z, defined as those born between 1997 and 2012, have purchased a product that appeared in creator-generated content. More than half (55%) of millennials (born between 1981 and 1996), 41% of Generation X (born between 1965 and 1980) and 24% of baby boomers (born between 1946 and 1964) have also purchased a product they saw from influencer content on a social media platform or entertainment app.
When Americans see influencer-generated advertising, they feel entertained (47%), followed by ready to research the product (43%). One-quarter (24%) are likely to share the endorsed product with friends and family, and 23% feel inspired. Fifty-two percent of consumers earning $100,000 annually made a purchase on an entertainment app or social media platform based on a post, reel or video from a creator or influencer. Almost half (46%) of those earning $50,000-$99,000 and 41% of those with incomes less than $50,000 made a purchase after viewing an endorsement in creator-generated content.
"Given the growth of creator-generated content and the quality and size of the audience that these social/entertainment platforms attract, brands have an opportunity to complement their branded marketing campaigns with these influencer-created ads," said Deirdre McFarland, chief marketing and communications officer of NCSolutions. "As brands seek to drive incremental sales, building loyal long-term customer relationships with younger buyers is a strategy that enables continued growth. Advertising on social or entertainment platforms is an effective way to connect with and engage Gen Z buyers and create lasting value for the brand."
Generation Z has more favorable attitudes toward creator-generated content compared to other generations. After viewing creator-generated content for a product, 37% of Gen Zers, compared to 23% of all other generations, expressed appreciation for creators sharing personal aspects of their lives. Additionally, 27% of Gen Z, compared to 12% of all other generations, feel strongly connected to influencers.
More than a quarter (27%) of Gen Zers (compared to 15% of all other generations) feel influencers are looking out for their viewers' best interests by endorsing only the top-quality products. Twenty-two percent of Generation Z (versus 14% of all other generations) feel their needs were understood by influencers. Twenty-one percent trust influencers and their recommendations (compared to 13% of all other generations), and 16% of Generation Z feels represented by creators (versus 9% of all other generations).
Consumers identified the elements of creator-generated advertisements that strike a chord with them. Things that make viewers laugh win the day, with 50% of Americans choosing humor as the number one attribute. "How-to" videos were cited by 40% of Americans, followed by music (37%), authenticity (34%), storytelling (33%), product suggestions (27%) and the connection with the influencer (12%). Additionally, 9% of consumers enjoy filters as a part of their advertising experience.
"Knowing the elements that consumers like the most and drive purchase behaviors is vital intel for brands, "McFarland said. "Last year, we updated the findings of our groundbreaking study, The Five Keys to Advertising Effectiveness. The update specifically looked at the primary drivers of incremental sales for advertising and select media comparisons. We confirmed that creative is responsible for the greatest contribution of incremental sales, at nearly 50%. But brand elements are also very important (21%)."
"This new consumer study about creator content shows that pairing your brand with the right creator not only raises the power of creative, but also enhances brand connections, allowing advertisers to make lasting impressions with consumers," said McFarland. "In addition, the survey findings reinforce the importance of measuring these campaign elements to get the insights you need to improve outcomes."
For more information, download the full study results.