MORE than half of rural social media users buy products through TikTok Shop, but only 1 in 5 use digital payment methods, showing their continued reliance on cash despite widespread internet access, according to a new study.
Research by advertising agency Ogilvy, media investment company WPP Media, and consumer research firm Fifty5Blue (formerly Kantar Media) found that 55 percent of rural social media users shop on TikTok, while only 21 percent pay digitally.
Cash remains the preferred payment method by all rural consumers surveyed. Purchases typically follow the most practical routes, including cash on delivery, GCash-enabled sellers, and sari-sari stores.
Ogilvy head of strategy Toni Tiu said rural consumers were wary of scams and fraud. They also wanted to avoid the time, expense and complex procedures involved in traveling to urban centers to resolve problematic transactions.
Limited access to financial services and digital payment infrastructure also contributes to the reliance on cash, according to Omar Carlos, assistant vice president for data and product enablement at WPP Media.
The study also found that rural life is getting more digital and mobile. About 92 percent of provincial households have internet access, with 98 percent connecting through mobile phones. Nearly all respondents — 99 percent — use smartphones to stream programs.
Traditional media remain relevant, although consumption habits are changing. Thirty-eight percent watch television on TV sets, 36 percent view TV programs online, and 30 percent listen to radio content through YouTube.
Social media platforms have likewise become the main gateway for discovering products and information. Sixty percent of rural consumers open Facebook daily, while 92 percent have access to Messenger. Posts from relatives and friends influence the purchases of 35 percent of respondents.
Price and product availability must be clearly presented because rural consumers generally seek practical purchases that benefit the household, the researchers said.
Consumers aged 15 to 45, mostly Gen Z and millennials, account for 76 percent of the rural population covered by the study, while 92 percent belong to socioeconomic classes D and E. Although younger consumers drive trends and purchasing volume, value is often measured by a product’s usefulness to the family.
Carlos cited personal-care products, household goods and visits to fast-food restaurants, which rural families often plan around milestones and celebrations. This contrasts with the more individualistic spending patterns of urban consumers.
Trust is another major factor. About 92 percent of rural consumers verify sources before accepting information as true, 91 percent remain loyal to brands they have used for years, and 69 percent regard established reporters and journalists as credible information sources. New brands have better prospects when their claims are supported by evidence and trusted endorsements.
Purchasing behavior also varies by region. Rural consumers in Luzon rely heavily on television and mobile phone screens. Those in the Visayas look for verifiable claims and reasonable prices, while consumers in Mindanao place greater value on community recommendations and local endorsements.
