New research from GoDaddy suggests that the influence of word-of-mouth recommendations is waning among younger consumers, with influencers gaining greater trust from Gen Z shoppers. According to a recent GoDaddy survey of 1,000 U.S. consumers, Gen Z is increasingly looking to influencers over friends, family, and co-workers for purchasing decisions, signaling a shift in how businesses can effectively reach this audience.

GoDaddy’s data shows a clear divergence between Gen Z and Millennial purchasing behaviors, particularly on social media platforms. Nearly 41% of Gen Z respondents trust a product or service recommended by an influencer over traditional business ads, whereas 46% of Millennials still place higher trust in ads from businesses.

Social Media Influence on Gen Z and Millennials

The survey highlighted that Gen Z and Millennials value different sources when deciding what to buy on social media:

Gen Z Influence Rankings:

Influencer’s post (57%)
Post from a business they follow (54%)
Ad in their feed (49%)
Friend’s post (40%)

Millennial Influence Rankings:

Post from a business they follow (57%)
Ad in their feed (51%)
Friend’s post (48%)
Influencer’s post (44%)

Alycia Leno, GoDaddy’s Director of Marketing, commented on these findings, stating, “Knowing that Gen Z consumers trust social media ads more than recommendations from friends is a game-changer if this is your target audience. Insights into how each generation shops, especially on social media, will empower small businesses to rethink their strategies.”

Social Media’s Growing Role in Product Discovery

The survey also revealed that social media ads remain effective for both Gen Z and Millennial consumers:

55% of Gen Z and 47% of Millennials regularly use social media to discover new products.
More than half of Gen Z (53%) and Millennials (57%) take action on ads served in their social feeds at least weekly.
Roughly 3 in 10 Gen Z (28%) and Millennials (32%) find social media ads useful for learning about new products or businesses.

Image: Envato

This article, “Gen Z Prefers Influencer Recommendations Over Word-of-Mouth” was first published on Small Business Trends