End of Word-of-Mouth Advertising? GoDaddy Data Shows Gen Z Trusts Influencers More Than Friends

Rhea-AI Summary

GoDaddy's recent survey of 1,000 U.S. consumers reveals a significant shift in consumer trust dynamics, particularly among younger generations. Gen Z consumers (41%) are more likely to trust influencer posts over business ads, while Millennials (46%) prefer business ads. Both generations rank friends' recommendations low in terms of purchasing influence.

The survey highlights distinct preferences in social media shopping habits:

• Gen Z is most influenced by influencer posts (57%), followed by business posts (54%)
• Millennials prioritize posts from followed businesses (57%) and ads in their feed (51%)

Both generations frequently use social media for product discovery and find social ads helpful. These insights emphasize the importance for small businesses to understand their target audience and leverage tools like GoDaddy's Digital Marketing to create effective social media strategies.

Positive

• Gen Z consumers (41%) trust influencer posts more than business ads, providing new marketing opportunities
• Millennials (46%) prefer business ads, indicating a strong potential for direct business marketing
• Both Gen Z (55%) and Millennials (47%) regularly rely on social media for product discovery
• Over half of Gen Z (53%) and Millennials (57%) take action on social media ads at least weekly
• GoDaddy offers Digital Marketing tools to help businesses create AI-generated content and manage social media campaigns

Negative

• Traditional word-of-mouth marketing is becoming less effective for younger generations
• Friends' recommendations rank low in purchasing influence for both Gen Z and Millennials
• Businesses may need to adapt their marketing strategies to target different generations effectively

Insights

Market Research Analyst

This survey data reveals significant shifts in consumer behavior, particularly among Gen Z and Millennials, which could impact marketing strategies for businesses using GoDaddy's services. The findings suggest a potential paradigm shift in digital marketing, especially for those targeting younger demographics:

• Gen Z trust in influencers (41%) over business ads is a notable trend, indicating a need for businesses to adapt their social media strategies.
• Millennials' preference for business posts (57%) shows they still value direct brand communication.
• Both generations show high reliance on social media for product discovery, with 55% of Gen Z and 47% of Millennials regularly using it.

These insights could drive increased demand for GoDaddy's Digital Marketing tools, as businesses seek to optimize their social media presence and ad strategies. The company's AI-powered content creation and analytics tools are well-positioned to capitalize on this trend, potentially boosting GoDaddy's revenue in the digital marketing segment.

Tech Expert

GoDaddy's strategic positioning with its Digital Marketing suite, powered by GoDaddy Airo™ and GoDaddy Studio, aligns well with the evolving digital landscape revealed in this survey. Key technological implications include:

• The need for AI-driven content creation to keep up with the high demand for social media content across platforms.
• Advanced analytics tools becoming important for businesses to understand and target generational differences effectively.
• Increased importance of cross-platform integration in marketing tools to reach diverse audience segments.

GoDaddy's emphasis on providing cost-effective, AI-powered tools for small businesses could be a significant differentiator in the competitive web services market. This approach may lead to increased adoption of GoDaddy's broader ecosystem of services, potentially driving long-term growth and customer retention.

Trust dynamic not the only shift for younger generations

TEMPE, Ariz., Oct. 17, 2024 /PRNewswire/ -- For years, word-of-mouth has played a critical role in the marketing success of small businesses. New data from GoDaddy suggests that recommendations from friends, family and co-workers are being replaced by influencers in terms of importance to younger consumers.

The GoDaddy survey of 1,000 U.S. consumers in September shows that while both Gen Z and Millennial customers are starting to behave differently than traditional shoppers, that doesn't mean they are trending in the same direction.

Approximately 4 in 10 Gen Z consumers (41%) trust a product or service posted by an influencer over an ad from a business, whereas nearly 5 in 10 Millennials (46%) trust an ad from a business more. 

Among both generations, when asked the likelihood of buying an item from a post on social media, posts from friends ranked low on the list.

Gen Z is more likely to buy something an influencer recommends, with friends coming in last.

• An influencer's post (57%)
• A post from a business I follow (54%)
• An ad in my feed (49%)
• A friend's post (40%) 

Millennials are more influenced by the businesses they choose to follow, with influencers and friends holding the least weight.

• A post from a business I follow (57%)
• An ad in my feed (51%)
• A friend's post (48%)
• An influencer's post (44%) 

"Knowing that Gen Z consumers trust social media ads more than recommendations from friends is a game-changer if this is your target audience," said Alycia Leno, director of marketing at GoDaddy. "Insights into how each generation shops, especially on social media, will empower small businesses to rethink their strategies and using the right tools will maximize their businesses social media marketing."  

Even though Gen Z and Millennial shoppers may differ in who they trust while scrolling through feeds, they still see the value social media and social ads offer.

• Most Gen Z (55%) and Millennial (47%) consumers regularly rely on social media to discover new products every, or nearly every time.
• More than half of Gen Z (53%) and Millennial (57%) customers are served an ad that results in them taking action at least every week.
• Nearly 3 in 10 Gen Z (28%) and Millennial (32%) consumers find social media ads helpful to learn about new products and/or businesses.

These findings show that small business owners need a good grasp of their audience, or they risk wasting time and spending money unnecessarily. By understanding how each generation prefers to shop on social media, entrepreneurs can target customers more directly and see better results faster.

Entrepreneurs can lean on online tools to maximize every social media post and ad. Digital Marketing from GoDaddy leverages the intuitive features of GoDaddy Airo™ and GoDaddy Studio to create custom AI-generated content, schedule social media posts, create digital ads, access helpful analytics and more. These cost-effective tools are readily available to small businesses of any size, with any budget, to help attract new customers and increase sales. 

To learn more about GoDaddy and its products, visit www.GoDaddy.com.

About GoDaddy
GoDaddy (NYSE: GDDY) helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a professional website, attract customers, sell their products and services, and accept payments online and in-person. GoDaddy's easy-to-use tools help microbusiness owners manage everything in one place and its expert guides are available to provide assistance 24/7. To learn more about the company, visit www.GoDaddy.com.

Source: GoDaddy Inc.

 

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SOURCE GoDaddy Inc.

FAQ

How do Gen Z and Millennial consumers differ in their trust of social media content according to GoDaddy's survey?

According to GoDaddy's survey, 41% of Gen Z consumers trust influencer posts more than business ads, while 46% of Millennials prefer business ads over influencer content.

What percentage of Gen Z and Millennial consumers rely on social media for product discovery?

The survey found that 55% of Gen Z and 47% of Millennial consumers regularly rely on social media to discover new products every or nearly every time they shop.

How often do Gen Z and Millennial consumers take action on social media ads according to GoDaddy's data?

GoDaddy's survey reveals that more than half of Gen Z (53%) and Millennial (57%) customers are served an ad that results in them taking action at least every week.

What tools does GoDaddy (GDDY) offer to help businesses with social media marketing?

GoDaddy offers Digital Marketing tools that leverage GoDaddy Airo™ and GoDaddy Studio to create AI-generated content, schedule social media posts, create digital ads, and access analytics to help businesses attract customers and increase sales.