Social Network Users Ignore Most Ads

Users not clicking

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[ Social Media]

While social networking continues to remain popular and grow, advertisers looking to grab users attention are seeing low click-through rates according to a new survey from IDC.

There are four major reasons why people use social networks: to connect and communicate; in response to peer-pressure; for entertainment; and for work-related purposes.

Social Network Users Ignore Most Ads

Advertising does not play a role in peoples motivation to use social networks. Ads on social networks have lower click-through rates than traditional online ads (on the Web at large, 79% of all users clicked on at least one ad in the past year, whereas only 57% of social network users did), and they also lead to fewer purchases (Web: 23%; social networks 11%).

"The thinking has been that the popularity of social networking services (SNS) will attract a big audience and generate a lot of traffic, which in turn will produce enormous amounts of user-generated content (UGC) and therefore advertising inventory – without any expenses for editorial staff or content distribution deals," said Karsten Weide, program director, Digital Marketplace: Media and Advertising.

"All of the above has proven true – except that almost invariably, SNS have had a hard time selling this inventory."

IDC predicts that lower-than-average ad effectiveness on social networks will continue to contribute to slow ad sales unless publishers get users to go beyond just communicating with others.

Social Network Users Ignore Most Ads
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  • http://www.keywebdata.com Chris Lang

    “Duh! I have been tell you all this for 9 months. What social media does is create thousands of little links that Google does follow.

    Hence you get ranked well under tartget terms in Google and that converts to sales. Forget about monetizing your social friends. Get them to instead forward you social shared links, hence creating ever more links all over social media sites.”

  • http://creativeherb.com creativeherb

    I think the issue with low CTR or social media users is that they are too netsavy. They can skim around the best of popup boxes or the most glaring of flashing ad banners. Offer them a highly targeted and useful product though, and you’ll get them in droves. Forget about the generic ads.

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