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27 May 2009
Insights into social media’s function as an advertising channel are emerging from studies in the US, which show that users like social media more for staying in touch with friends and family than seeking guidance on purchase decisions.
A new report by US consumer information company Knowledge Networks, “How People Use Social Media”, finds that across the nine product categories studied, less than 5% of social media users regularly turn to social network sites to seek guidance on brands or purchasing decisions.
The research was conducted in March 2009 among 502 online-panel respondents. The product categories studied include Clothing, Personal Care, Groceries, Travel and Mobile Phones.
- 83% of internet users aged 13-54 use social media, 47% using at least weekly
- only 1% use Twitter weekly
- 54% most like social media for staying connected to friends and family
- 63% of social media users say ads are a “fair price to pay” but only 16% would be likely to buy from companies advertising on the sites
- only 3% regularly turn to social media for information on purchase decisions on clothing or personal care, 2% for information on groceries and food purchases.
According to David Tice, Vice President and Group Account Director, Knowledge Networks, "Social media users do not have a strong association between these sites and purchase decisions; they see them as being more about personal connection…”.
Magazines, by comparison, are highly effective as a purchase guidance medium.
MPA’s 2007 Media Matchmaker study shows that magazines score highest of all media for providing ads that are helpful in purchase decisions, with a score of 46%. The internet scores only 18%.
Other findings:
- 41% like magazines to carry advertising, compared to only 10% for the internet.
- 44% say the ads in magazines are more relevant to them, compared to just 14% for the internet.
Magazines are also the highest scoring medium for purchase-decision information:
| “best source of information for purchase decisions”: | Magazines | Internet |
| Clothing & Fashion | 63% | 8% |
| Food Products | 47% | 14% |
| Skin/Haircare & Cosmetics | 54% | 10% |
| Health Products and Services | 30% | 24% |
| Household Furnishings | 39% | 16% |