Social media can eat into your bank balance.
Roughly four in 10 adults with a social media account (39%) say that seeing other people’s purchases and vacations on social media makes them look into a similar purchase or vacation, according to a survey of more than 1,000 Americans released this summer by the American Institute of Certified Public Accountants. What’s more, 11% have taken a vacation or made a purchase in the last year after seeing someone’s post about their vacation or purchase.
And fully 30% of Americans say that social media has some influence on their purchasing decisions, with 5% saying that it has a significant impact, a 2014 Gallup poll found. Among millennials the numbers are even higher with roughly half saying that social media influences what they buy.
Some social media-related spending, of course, is driven by the fact that many brands advertise their goods and services on social media or pay celebrities and other influential people to post about them. By 2017, social network advertising spending is expected to hit nearly $36 billion, or roughly 16% of all digital ad spending globally, up from about $24 billion in 2015, according to eMarketer, and celebrities ranging from reality stars like the Kardashians to sports bigwigs to fashion bloggers have endorsed brands on social media.