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BizReport : Social Marketing : November 26, 2008
IDC: Social networks not receptive to ads
Consumers may be logging on to social networks in droves but they aren't receiving social networks advertising in the same way. According to a recent survey from research firm IDC, the growth of social networks will continue to grow but social users are not as receptive to ads as marketers once thought.
Primarily consumers are using social networks to connect and communicate with friends and family; many are also logging on for work. Because they are so focused on specific tasks when logged in, though, means less tolerance for the ads on social networks. Researchers found that 79% of consumers clicked on an online ad but only about 57% of consumers on social networks clicked. Social networkers are also making fewer purchases by about half.
"The thinking has been that the popularity of [social networks] 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, [social networks] have had a hard time selling this inventory."
Tags: IDC, social network advertising. social network users, social networks
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