How social media makes shopping addicts spend more money

Shopping addicts who can’t control their online spending urges are advised to do a social media stocktake, as brands increasingly tempt us around the clock.

Shopping addicts who can’t control their online spending urges are advised to do a social media stocktake, as brands increasingly tempt us around the clock.

As spending at a keystroke continues to surge, up to 50 per cent of traffic to retail websites cab be driven by social media and digital marketing.

Retail brands are increasingly using clever tactics to lure shoppers, including influencers, YouTube videos to “educate” consumers on products and harnessing big data for targeted advertising.

• How robots can manage your cash

• Mastercard’s big change to banking

To rein in spending, experts recommend un-following favourite brands, setting up alerts for sales, and researching to get the best deal.

In late 2018, about 15 per cent of traffic to Amazon Australia’s website came from socials and emails, while 14 per cent of The Iconic’s visitors were from social media and about 8 per cent from emails, new Hitwise data reveals.

Social media and spending money go hand-in-hand for modern consumers.

Fashion company ASOS enticed 20 per cent of its shoppers from social media — including YouTube, Instagram and Twitter — and about 2 per cent by emails.

Crowd Media managing director Judy Sahay said popular social media sites Facebook and Instagram were the biggest platforms pushing online sales and changing purchasing behaviour, making it easier for shoppers to satisfy their desire for “instant gratification”.

“Algorithms understand what your interests are, you are advertised to directly, and then with a click of a button you receive the product in a matter of days,” she said.

“This process gets refined with every passing day, making it easier for brands and businesses to reach potential consumers and have them purchasing within seconds.”

Ms Sahay said social media platforms had leveraged big data to make shopping experiences highly personalised, like re-targeting users with display ads on products they browsed.

Alexander Meyer, chief marketing officer at The Iconic, said more than half of its sales stemmed from digital marketing channels.

“Whether it’s clicking through to the site from an email newsletter, social post or opening an app push notification, our customers engage with us in many different ways, which is … why having a strong digital marketing strategy is so important,” he said.

Mr Meyer said it was not uncommon for customers to spot a product they liked in a morning email, “wish list” it on the mobile app on the way to work, browse other products on their iPad or mobile at night, then place an order.

HOW TO SHOP SMARTER

• Do your research and compare prices online.

• Make a list of “needs” versus “wants”.

• Set up alerts for sale periods and promotions.

• Delete cache when targeted by products you’ve been searching, to avoid unnecessary purchases.

• Search discount shopping sites.