As influencers experiment with the best platforms to monetize their followings, some find that to reach a luxury audience, Instagram and TikTok do not quite cut it.
Caley-Rae Pavillard, an influencer and vice president of business development and partnerships at social monetization company ShopMy, told PYMNTS that alternate platforms are emerging in the space.
“For luxury fashion creators, … Substack is really the platform that we see,” Pavillard said. “Creators that have the ability to convert on that higher price point or higher AOV do much better. …The conversions are so much higher on Substack because people have already committed to subscribing to you, whether free or paid, and they’re really invested in what you have to say as a creator.”
Supplemental research from the PYMNTS Intelligence study “Tracking the Digital Payments Takeover: Monetizing Social Media” revealed that higher-income consumers are the most willing to buy from social media platforms. The findings showed that 22% of consumers who earn more than $100,000 annually purchased via social media in the 30 days before the survey, versus 14% of the population overall.
The shifting dynamics between traditional social media platforms and alternative channels like Substack illustrate a broader evolution in consumer behavior, where trust and direct connection with content creators are becoming the key differentiators.
In general, social commerce is transforming as consumers’ desires and expectations evolve. Pavillard highlighted a shift in content efficacy where authenticity often trumps aesthetic perfection. The content that performs well is candid and relatable, resonating more deeply with audiences.
“[Followers] don’t really care if the lighting is great in the selfie or if it’s a mirror selfie,” Pavillard said. “They just want to understand where you’re buying that top or where you’re buying your jeans and what are the brands you’re loving.”
Pavillard noted a consequent departure from the “influencer” label, which some find unappealing, toward a preference for “content creator” or “curator.” The latter terms are meant to capture a more authentic, trust-based relationship with followers, who seek genuine recommendations over polished, highly produced posts.
Platforms such as Instagram and TikTok have been impacting these changes. Pavillard observed that while Instagram Reels demand high effort and production time, the lack of clickable links limits their sales conversion potential. Conversely, Instagram Stories, with their direct links, offer a more effective sales channel.
Similarly, TikTok’s user experience has historically presented challenges in directing traffic off-platform, although the introduction of TikTok Shop has helped enhance monetization, depending on the market segment.
“[TikTok Shop is] somewhat limited in terms of the brands you can work with as a creator,” Pavillard said. “So, I think that’s one we’ll have to continue to keep an eye on and see how that develops.”
According to the PYMNTS Intelligence report “Generation Zillennial: How They Shop,” 13% of consumers nationwide reported making a purchase in the past month influenced at least in part by a social media personality or celebrity. This influence was even more pronounced among younger generations, with 28% of Generation Z and 22% of millennials reporting such purchases.