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 patterns, particularly among younger generations. Gen Z shows stronger trust in influencer recommendations (41%) over business ads, while Millennials prefer business advertisements (46%). The study indicates that 57% of Gen Z is likely to purchase from influencer posts, while the same percentage of Millennials favors business posts. Both generations demonstrate high engagement with social media for product discovery, with 55% of Gen Z and 47% of Millennials regularly using these platforms to find new products. Social media ads trigger weekly actions from over half of both generational groups.

Positive

• High engagement rates with 55% of Gen Z and 47% of Millennials regularly using social media for product discovery
• Strong conversion potential with over 50% of both generations taking action from social media ads weekly
• Clear market segmentation data enabling targeted marketing strategies

Negative

• Declining effectiveness of traditional word-of-mouth marketing
• Different trust patterns between generations requiring split marketing approaches

Trust dynamic not the only shift for younger generations

Originally published on GoDaddy

TEMPE, AZ / ACCESSWIRE / November 4, 2024 / 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.

View additional multimedia and more ESG storytelling from GoDaddy on 3blmedia.com.

Contact Info:
Spokesperson: GoDaddy
Website: https://www.3blmedia.com/profiles/godaddy
Email: info@3blmedia.com

SOURCE: GoDaddy

View the original press release on accesswire.com

FAQ

What percentage of Gen Z trusts influencer posts over business ads according to GoDaddy's survey?

According to GoDaddy's survey, 41% of Gen Z consumers trust products or services posted by influencers over ads from businesses.

How often do Gen Z and Millennial consumers discover new products through social media?

55% of Gen Z and 47% of Millennial consumers regularly rely on social media to discover new products every or nearly every time.

What is the likelihood of Gen Z buying from an influencer's post according to GDDY's research?

According to the survey, 57% of Gen Z consumers are likely to buy from an influencer's post, making it their most trusted source for purchases.

How do Millennials prefer to discover products on social media according to GoDaddy's data?

According to the survey, Millennials prefer posts from businesses they follow (57%), followed by ads in their feed (51%), with influencer posts ranking lowest at 44%.