Chime Unveils Social Media Impact on Shopping Habits in 2024 with "Spendfluence" Report

October 22, 2024
Chime Unveils Social Media Impact on Shopping Habits in 2024 with "Spendfluence" Report
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Chime Unveils Social Media Impact on Shopping Habits in 2024 with "Spendfluence" Report

In today's era of online shopping, it's no secret that social media plays a pivotal role in shaping consumer behavior. A new report from Chime®, conducted by Talker Research¹, titled Spendfluence: Social Media Impact on American Spending, explores how platforms like Instagram and TikTok are shaping Americans' purchasing decisions, particularly among younger generations.

According to the research, Americans average three hours per day browsing products on social media, and a shocking 99% claim that this may lead to a purchase with the peak occurring at 2:36 pm on Saturday. When it comes to platform preferences, Facebook Marketplace (49%) and TikTok Shop (41%) top the list for deliberate purchases, while Facebook (32%) and Instagram (19%) are favored for casual browsing.

When looking at purchasing habits, Gen X is more likely than any other generation to shop the "Sunday Scaries" away (24%) and favor home goods (26%). Gen Z, on the other hand, shops to rid themselves of the "Monday Blues" (15%) and are most likely to shop online for personal care items such as body wash or shaving cream (32%). Regardless of generation, almost two-thirds (63%) admit to browsing products on social media during the workday, with millennials being particularly susceptible (39%). This divergence highlights how different age groups utilize social media for shopping based on emotional needs and lifestyle.

"Social media has transformed shopping into a spontaneous, almost instinctual experience for many," said Janelle Sallenave, Chief Spending Officer at Chime. "But the real power lies in knowing when to hit 'buy.' Shopping smart is about balancing impulse with intention – ensuring your purchases align with your lifestyle and budget, not just a fleeting urge."

The report also reveals that Americans spent an average of $168 on social media purchases in the last six months, with clothing (46%) and fashion accessories (30%) being the most popular categories. Despite concerns over targeted ads, 43% of respondents found these ads helpful, while 41% expressed concern.

Building on these findings, Chime analyzed purchasing behavior of its members' spending on TikTok Shop and discovered a remarkable 320% increase in monthly spending between September 2023 and August 2024, along with a 220% rise in monthly transaction volume. Per-user spending also surged by 87% during this period, with total spend on the platform growing 16% month-over-month, on average. Chime's data also highlights regional trends: major cities like Houston, Chicago, Las Vegas, and Philadelphia lead in transaction volume, while smaller cities such as Buckeye, AZ, and Midland, TX lead in transaction volume per user. As TikTok and social media continue to reshape e-commerce, it's clear that casual browsing is evolving into a significant driver of consumer spending.

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These are self-directed financial tools rather than individualized financial planning, tax, or investment advice, and feature availability may depend on a member's account or membership tier.

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Learn more on Chime's membership tiers page.

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Yes. With qualifying direct deposits, members earn 5% cash back as a Chime Prime™ member or 2% cash back as a Chime Plus™ member on up to $1,500 of eligible Chime Card™ purchases in a category they choose monthly. (see disclosure 8) Chime Prime members also earn 3.75% APY (see disclosure 10) on savings, while Chime Plus members earn 2.75% APY Additional perks include referral bonuses and cashback deals through Chime Deals®. (see disclosure 11)

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Chime Invest is Chime's commission-free investing feature, giving Chime PrimeTM members a way to invest alongside their everyday checking and savings accounts with no advisory fees (see disclosure 12) , no commission fees (see disclosure 3) , and no subscription fees. Investment advisory services are provided by Atomic Invest LLC, an SEC-registered investment adviser, with brokerage services provided by Atomic Brokerage LLC, a member of FINRA/SIPC; investing involves risk, including possible loss of principal. (see disclosure 4)

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Chime members can file taxes for free (see disclosure 13) through the Chime app, and a federal tax refund sent by direct deposit can arrive up to 5 days early. (see disclosure 14) Chime doesn't provide tax advice, so members should check with a tax professional for guidance specific to their situation. (see disclosure 15)