Social surpasses more-traditional channels in purchase influence
Internet users in Australia increasingly rely on social media and their peers when it comes time to make buying decisions. In fact, social media is increasingly outpacing traditional channels like TV as the preferred medium for Australian advertisers looking to reach, and influence, potential customers.
April 2016 data from Deloitte, which examined the leading influences for purchase decisions among internet users in Australia, highlights this move toward peer-based recommendations and social media. Recommendations from friends and family, along with online reviews or recommendations for social media circles, topped the most influential sources, mentioned by 78% and 58% of respondents respectively. Television ads, meanwhile, came in third, mentioned by 55% of respondents.
Even though more than half of respondents still mentioned television advertising as a factor in purchase decisions, social media is often present in a second-screen role, particularly for millennials. In Deloitte’s examination of TV multitasking behaviors, more than 40% of millennials (ages 14 to 32) used a social network while watching TV.
The growing importance of social media among shoppers in Australia may be one reason for the higher prices Australian retail brands have paid for social ads in recent years. According to a Q1 2016 report by Salesforce.com, which looked at Australian Facebook ad CPM rates across different industries, retail advertisers paid CPMs of more than $10 through the social site, higher than any other industry studied.