Instagram and TikTok Outshine Google in Local Search for Gen Z

New Platform Preferences Among Gen Z for Local Businesses

Google has lost its top spot among Gen Z as the preferred platform for searching for local businesses to shop in-person. According to a report from marketing platform SOCi, Instagram now holds the lead with 67% of Gen Z users, followed closely by TikTok at 62%.

Google remains a popular choice for local search engine among Gen Z, ranking third at 61%. However, social media is gaining traction as a preferred resource for finding local businesses across all age groups.

The report highlights the growing competition that social platforms pose to Google, with ChatGPT emerging as another potential threat. Additionally, Google has been updating its search service, such as integrating its Gemini artificial intelligence (AI) model into Google Ads.

Article Insight: 

According to recent findings from SOCi, it appears that Google's stronghold in the search market might be in jeopardy. Even though search still accounts for the largest portion of the company's revenue in Q4, with a 12.7% increase year-over-year to $48 billion, other reports, including leaked internal research from Google, suggest that Gen Z users are turning to social media platforms for their search needs.

A seismic shift is changing how consumers discover local businesses, according to Damian Rollison, director of market insights at SOCi. Younger shoppers are turning to Instagram and TikTok for search and discovery, challenging traditional search engines. Having a strong presence on these platforms is not just beneficial for businesses, but essential for capturing the attention of younger consumers.

Social media is becoming a popular tool for search across all age groups, not just Gen Z (aged 18-24). Google Search and Google Maps remain the top choices for finding local businesses across all demographics. Following them are Facebook in third place, then Instagram, TikTok, and Snapchat. Facebook is a preferred local search platform for around two-thirds of consumers aged 35-44 and 60% of those aged 25-34. On the other hand, Instagram is favored by 50% and 54% of those respective age groups.

The report highlighted disruptors like ChatGPT as a threat to Google, with generative AI technology gaining traction in the advertising industry. Despite this, Google has been investing in its own Gemini AI solution. In January, Google introduced a conversational experience powered by Gemini in Google Ads. Early tests showed that advertisers were able to create higher quality search campaigns with less effort, leading to improved Ad Strength scores. However, Gemini has also faced challenges with misinformation, similar to other generative AI tools.

Google recently announced plans to enhance the quality of its search results through algorithmic improvements and stricter spam policies. These changes aim to boost quality rankings and remove low-quality content from search results. Google expects these updates to reduce low-quality and unoriginal content in search results by 40%.

Google remains the top choice for local searches among older age groups, with 79% of 55-64 year olds, 76% of 35-44 year olds, and 74% of 45-54 year olds staying loyal to the platform. Additionally, Google Maps is the preferred navigation tool for 60% of consumers aged 55-64 and 57% of those aged 45-54. SOCi surveyed over 1,000 U.S. consumers for this report. These findings are part of SOCi's 2024 Consumer Behavior Index, which looks at how consumers engage with local businesses both online and offline.

Editor's P/S:

The recent shift in Gen Z's search preferences is a significant development that underscores the evolving digital landscape. The rise of social media platforms like Instagram and TikTok as the primary platforms for local business discovery among this demographic highlights the need for businesses to adapt to these changing consumer behaviors. It's crucial for local businesses to establish a strong presence on these platforms to effectively reach and engage with potential customers.

Additionally, the emergence of generative AI technologies, such as ChatGPT, poses a potential threat to Google's dominance in the search market. While Google continues to invest in its own AI solutions, such as Gemini, it remains to be seen how these technologies will impact the search landscape in the long run. However, it's clear that the search industry is undergoing a transformative period, and businesses must stay abreast of these changes to maintain their visibility and relevance in the digital age.