Social media increasingly shapes Estonians’ purchasing decisions

Nearly 80 percent of Estonia’s regular online shoppers find inspiration for purchases on social media, according to a study by Geopost, an international logistics and parcel delivery company, ERR reported.

Companies are increasingly directing their marketing strategies towards social media, with the main aim of expanding opportunities and increasing profits. Magnus Lužkov, head of the creative agency Optimist Creative, said consumers often may not realise that what they are seeing is advertising.

“People follow those who are interesting on social media,” Lužkov said, explaining that such people are encouraged to use or discuss a particular brand’s product or service. As a result, viewers may perceive the content as entertainment rather than advertising.

Maria Murumaa-Mengel, an associate professor of media studies at the University of Tartu, said social media offers a more authentic and trustworthy experience than conventional advertising. People tend to trust those who feel closer to them, both psychologically and geographically, she said.

“We want intermediary opinion leaders to help us understand what decisions we should make ourselves,” Murumaa-Mengel said. People therefore look to figures they find appealing and whose opinions they respect, including for inspiration about what they consume.

Lužkov said people seek authenticity and transparency, meaning that human-centred advertising is often trusted more. A video filmed on a phone and presented as an amateur recording can appear more genuine than a conventional advertisement, he said.

However, Lužkov said entertainment-based advertising created by influencers does not directly determine purchasing decisions. Instead, it works together with other forms of advertising. A consumer may remember an influencer using a product, then later recognise it in another advertisement and decide to buy it.

Murumaa-Mengel said many people do not check the content of the advertising they are shown and blindly trust influencers, making them vulnerable. The first question should be whether the advertised product is needed at all, she said.

She said social media can make people feel that they constantly need new things. Genres such as haul videos, replacing one’s wardrobe and renovating every two months can normalise constant consumption and the idea that people should demonstrate their value by owning new items.

Social media advertising has both positive and negative sides, Murumaa-Mengel said. It can provide useful information when it helps someone find a product they genuinely need, but it also raises the question of whether the items being promoted are necessary. She urged people to assess social media information critically.