Opinion Instagram is making us buy our belongingness

In 1899, sociologist Thorstein Veblen coined the term “conspicuous consumption” to describe the tendency of people to buy things not for their utility but as a display of wealth and status. At the time, his theory applied mostly to the ultra-rich — the ones who could afford to spend frivolously to signal their social standing. But more than a century later, Instagram has democratised that impulse. The allure of curated lifestyles, paired with a digital economy that rewards visibility, has transformed Instagram into both a marketplace and a stage where desire is manufactured and monetised at an unprecedented scale.

Instagram didn’t invent aspiration, but it did something more powerful: It made it feel personal. Traditional luxury marketing was built on distance — runway models, glossy magazine ads — a world beyond immediate reach. Instagram collapsed that distance. Now, it’s not celebrities selling the dream; it’s the girl you went to high school with, the fitness coach with 10k followers, the influencer whose morning routine feels both enviable and attainable. A new kind of behavioural economics — where the old levers of desire (scarcity, social proof and comparison) operate at hyperspeed.

The influencer economy is worth over $21 billion because it replaces cold corporate persuasion with something far more effective: Trust. When a friend — or someone who feels like one — recommends a product, the line between marketing and reality disappears. A $500 Dyson Airwrap isn’t just a hair tool; It’s an investment in self-worth. A Stanley Cup isn’t just a water bottle; It’s a lifestyle choice. The more we scroll, the more we buy — not because we need more, but because we’re chasing a version of ourselves that feels just within reach.

The influencer economy is now a multi-billion-dollar industry. According to McKinsey, Gen Z consumers are particularly susceptible to influencer marketing, with nearly 75 per cent reporting that they rely on social media recommendations before making a purchase. Companies are now focusing on “ROI-driven [return on investment] influencer collaborations”, prioritising engagement metrics over follower counts. In other words, influencers are no longer just aspirational figures — they are business assets, meticulously selected based on their ability to convert visibility into sales.

Brands are now adopting a more strategic approach to influencer marketing, moving beyond flashy one-off campaigns toward long-term partnerships with content creators who align with their brand values. This is particularly true in the beauty, fashion, and wellness industries, where influencers have become the primary channel for product discovery.

While Instagram fuels an economy of influence, it also perpetuates a culture of perpetual dissatisfaction. The platform thrives on aspiration — the idea that there is always something more to want, whether it’s a better wardrobe, a more sculpted body, or a perfectly aesthetic morning routine. This is where behavioural economics collides with psychology: Instagram activates the fear of missing out (FOMO) and social comparison, two powerful forces that nudge users into consumption-driven behaviours.

While Instagram presents itself as a window into real life, the content it promotes is anything but real. The carefully filtered, algorithmically optimised images create a distorted perception of success and fulfilment, making consumers chase after a reality that doesn’t exist.

The business of influence has also created a paradox: The more accessible fame becomes, the more costly it is to maintain. Many influencers go into debt trying to uphold the very lifestyles they market to their audiences. The pressure to maintain an image of success often leads to deceptive practices — renting luxury cars for photoshoots, staging “vacations” in elaborate studio setups, or even buying fake followers to appear more influential than they actually are.

Interestingly, there are signs of a shift in consumer sentiment. There is a “quiet reset” in the influencer economy, where audiences are becoming more discerning about the content they engage with. As awareness around overconsumption grows, there is a rising demand for transparency, sustainability and genuine connection. Some brands are responding by pivoting toward “de-influencing” campaigns — marketing strategies that encourage mindful consumption rather than impulse-driven spending.

However, this reset does not mean the end of Instagram-driven consumerism. Instead, it signals an evolution. The platform is adapting, shifting its focus from mass appeal to niche communities where engagement is higher and trust runs deeper. This is particularly evident in the rise of “micro-influencers” and “nano-influencers” — everyday users with small but loyal followings, whose recommendations carry more perceived authenticity than those of mainstream celebrities.

Instagram has redefined the economics of aspiration. It has turned visibility into currency, influencers into corporations, and everyday users into consumers trapped in an endless loop of wanting more. The platform doesn’t just reflect consumer desires — it manufactures them, shaping not only what we buy but how we think about success, status and self-worth.

Yet, if history is any indication, every economic model reaches a tipping point. As audiences become more conscious of the mechanics behind influencer marketing, brands will have to adapt. The next phase of Instagram consumerism may prioritise depth overreach, authenticity over perfection, and experience over materialism.

But for now, the cycle continues. The scrolling doesn’t stop. The next post appears. Another product, another promise, another glimpse into a life just slightly out of reach. And we, the consumers, remain caught between aspiration and reality — buying things we don’t need, to impress people we don’t even like.

The writer is a consultant at AON