Despite dramatic inflation and the possibility of an incoming recession, shoppers are continuing to spend their hard-earned cash on product recommendations from social media Creators, according to key insights gathered from two national surveys conducted by influencer marketing platform LTK. 

Earlier this year, the LTK Shopper Study and the LTK In-Store Shopper Study found that Creator content drove higher conversion rates than traditional advertising, even amidst rising inflation. LTK also found that 72 percent of the general population believes the country is currently facing a recession. Any recessions that have taken place since World War II have typically lasted an average of around 10 months.

However, the current recession doesn’t seem to be impacting everyone equally. Gen Z,  millennials, those who earn more than $100,000 annually, and Creator shoppers are reportedly less likely to believe we’re currently in a recession, according to the study. The survey also found that these same groups possess increased buying power and purchase intent, in spite of rising inflation. 

The Powerful Influence of Creator-Driven Content 

Investing in your company’s marketing efforts during an economic recession can help boost market share and expand brand awareness. 

Instead of reducing your brand’s marketing budget to save cash, focus instead on investing in channels that are already performing well. These efforts can dramatically pay off. Data collected by LTK demonstrated an increase in clicks and gross merchandise value (GMV) during the first quarter of 2023, up from the previous year. 

More demographics (especially Gen Z and millennials) are turning to Creators for product recommendations and shopping deals. Creators are the most trusted form of social media for all generations, followed by social media advertising and celebrity posts. In fact, 78 percent of millennials and 82 percent of Gen Zers feel positively about Creator-driven content, and 78 percent of Gen Zers and 68 percent of millennials say they’ve made purchases based entirely on Creator recommendations. 

It’s not just online shoppers who are influenced by Creator content. Seventy-seven percent of Gen Zers and 67 percent of millennials have also made in-store purchases based on influencer trends. Additionally, 42 percent of Gen Zers have shopped at a new retail store solely because of a Creator’s recommendation. 

Why Businesses Should Prioritize Creator Marketing During Recessionary Times

Why should brands invest in Creator-driven marketing during unpredictable economic times? 

A 20-year study conducted by Analytics Partners found that 60 percent of brands that increased marketing investment during the last recession experienced a growth of ROI. Meanwhile, 50 percent of brands that increased marketing investment during the last recession saw ROI growth in back-to-back years, and brands that increased media investment during the same timeframe experienced a 17 percent growth in incremental sales. 

Creator commerce often delivers a greater impact than traditional advertising, which is why it’s essential for influencers to maintain authentic relationships with their followers. Young shoppers crave honesty and transparency, and Gen Zers and millennials often prefer using social media networks like TikTok or Instagram to seek out product information over a brand’s website. 

Learn How Creator Marketing and the Right Influencer Marketing Platform Can Build Your Brand

Why are we considered the top influencer marketing platform in the world? LTK is the No. 1 tech-enabled power partner for Creator-guided shopping. Last year, our 20 million-plus monthly shoppers drove more than $3.5 billion in sales for clients through the curated LTK Creator community.