In today’s society, with the rampant increase in the use of social media, people of all generations find themselves subject to targeted advertisements. Simultaneously, a consumer culture has emerged as people continuously purchase products at an unprecedented rate. In fact, over the past ten years, non-essential household expenditures have increased by nearly 35 percent according to the Bureau of Labor Statistics. This trend has been influenced by a general change in consumers’ mindset—partly due to the hyper-personalized modern-day advertising system. With most decisions being data-driven, companies utilize various platforms to effectively lure in customers. The subsequent overconsumption also has drastic effects on both individuals and society as a whole, something that needs to be heavily reformed.
The modern-day advertising system works as a sophisticated mechanism to garner customer data, target algorithmically and psychologically influence customers to take action. With data collection tools like “cookies”—files on browsers that track activity across different sites—companies are able to constantly monitor prospective customer’s behaviors and interests, informing decisions on how and where to plant a seed in their minds to buy their product. This can further be seen on social media platforms like TikTok and Instagram. “I have encountered lots of ads on social media in forms such as short videos or posts that advertise a certain item which are generally tailored to my liking after gathering information through the videos and posts I like,” junior Padraig Conley said.
The hyper-personalized nature of these advertisements makes them highly effective in influencing purchasing behavior, often leading to impulse buying. Platforms like TikTok and Instagram continuously refine their advertisement algorithms to ensure that users are exposed to products that align with their interests, making it difficult to resist temptation. “People think less about what they are purchasing since they can swiftly click a few buttons, put in a credit or debit card number, and wait a few days for it to show up at their door,” Conley said. The ease of purchasing these products may seem convenient, but in actuality, it leads to a cycle of unnecessary spending that gradually accumulates into a financial and emotional burden. Small and impulsive purchases can quickly add up, causing a financial burden for many consumers. Instead of prioritizing long-term financial stability, customers give in to instant gratification. People, especially of younger generations, feel as if they need “the new hottest thing,” quickly disposing of items and exacerbating this cycle. An article by Teen Vogue further discusses this phenomenon, as viewers feel coerced to buy the same products their favorite influencers buy. This widens the hole in their pockets while promoting the stigma of having to look like someone else, ultimately making them feel less confident and overall worse about themselves.
Modern advertising also plays a significant role in promoting and maintaining monopolies in all sorts of markets. Larger corporations have more extensive customer data and larger advertising budgets at their disposal, enabling them to dominate online spaces. Smaller businesses are often choked out, eliminating any growth potential. “I rarely see more than two or three businesses in an industry portraying their ads,” Conley said. This concentration of market power not only limits consumer choice but also contributes to the cycle of overconsumption, as users are repeatedly exposed to the same brands and persuaded to purchase more from these industry giants. As a result, innovation and diversity in the marketplace are stifled, and consumers become dependent on a few dominant corporations for their purchasing needs.
At face value, one might think that personalized advertisements on social media platforms are beneficial—giving you product recommendations that match your interests and needs. However, it is the complete opposite, detrimental in every way possible. By being a complete nuisance for your mind and your wallet and also creating a disadvantaged market, advertising systems in place need to change. What information and who gets the information need to be more strictly regulated. Certain limits must be introduced for larger companies’ advertising budgets. Lastly, increased awareness should be spread to allow customers to make conscious decisions on what they spend their money on, preventing them from falling into the cycle of overconsumption.
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