Research Finds Instagram and YouTube as Preferred Shopping Platforms for Generation Z
In a significant shift from traditional television advertising, Gen Z (16-29 years) and Gen Y (30-44 years) are increasingly influenced by platforms such as YouTube and Facebook in their consumption decisions.
According to the Social Media Atlas, an annual study by PER Agency and Toluna, YouTube reaches as many people as advertising on TV and is catching up in terms of sales strength. Dr. Roland Heintze, Managing Partner of PER and Social Media Expert, comments that social media is often much cheaper per contact and is closing the gap in sales effectiveness compared to television.
For Gen Y, Facebook is a popular platform, with around 60% of this age group reading information, 40% liking it, and 30% commenting on it. However, when it comes to Gen Z, YouTube takes the lead, with 57% being motivated to buy by Instagram and 56% by YouTube.
The impact of YouTube and social media advertising on Gen Z and Gen Y consumer behavior is evident. YouTube ads deliver 2.3 times better returns than paid social ads and 4.5 times more than streaming TV ads on driving conversions. Gen Z and Gen Y heavily rely on YouTube for product discovery and research, with 70% being introduced to brands they’d never heard of before via YouTube. YouTube is the top platform for product reviews across all age groups.
Consumer trust is higher with YouTube creators than other influencers or traditional TV ads, with 98% of users trusting YouTube creators more than influencers on other platforms. The rise of Connected TV (CTV), which includes YouTube on TV sets, further strengthens this impact by merging the benefits of both media types.
Social feeds, including Instagram, TikTok, Facebook, and YouTube, are replacing traditional TV viewing habits, especially among younger consumers who spend more daily time on these platforms scrolling videos and posts than watching linear TV. This shift towards interactive, internet-enabled platforms allows brands to combine long-term brand building with immediate purchase activation, something traditional TV alone has struggled with.
For targeted addressing of consumers, social media offers unbeatable advantages, especially in combination with data analysis and AI. Around a third of social media users say they have bought a product or used a service because it was advertised or shown on YouTube or Facebook.
Television and newspapers remain important for the visibility of brands and the persuasion of consumers. However, for Gen Z and Gen Y, YouTube and social media platforms offer more personalized, trustworthy, and interactive ad experiences that drive quicker purchase decisions and stronger brand discovery, outperforming traditional TV ads that are often seen as passive and less engaging.
[1] Social Media Atlas 2025 surveyed 3,500 German internet users aged 16 and above online from December 2024 to January 2025. [2] [3] [4] Various sources.
The full study can be ordered from [email protected] for a fee of 890,- Euro plus VAT.
Technology plays a significant role in influencing consumption decisions of Gen Z and Gen Y, as they are heavily relying on platforms like YouTube and social-media for product discovery and research. Entertainment platforms such as YouTube are delivering better returns than traditional TV ads in engaging consumers and driving conversions.
