| ||||||||||||
PRINT
COMMENT
SUBSCRIBE
RSS
The vast majority of young consumers--84%--do notice ads on social networks. The bad news for advertisers, however, is that just 19% find the ads relevant, according to a new study released Tuesday by The Participatory Marketing Network and the Lubin School of Business' Interactive and Direct Marketing Lab at Pace University.
As a result, the study found that 74% of respondents reported clicking infrequently on ads, while 36% reported never clicking on ads. Not surprisingly, the study finds that brands are struggling to build a compelling value proposition for Generation Y users on social networks.
"More work must be done to understand what drives participation and engagement within social networks," said Michael Della Penna, co-founder and executive chairman of The Participatory Marketing Network marketing association.
In regard to hesitant advertisers, Della Penna said: "Many are still waiting for proof that increasing investment in this burgeoning 'channel' will yield measurable benefits."
Yet not all of the data is so discouraging. A full 62% of Gen Y consumers reported visiting a brand or fan page on a social network, and 48% confirmed actually joining such a network.
The top five reasons that young consumers gave for joining a brand or fan group were to "get news or product updates" (67%), "view promotions" (64%), "view or download music or videos" (41%), "submit opinions" (36%) and "connect with other customers" (33%).
2 people recommend this article.
RSS FEEDS
What should be taken from these findings is how we should place value on view-through conversions from social websites. Many of the Ad Networks have been utilizing low-priced CPMs from Social websites in an effort to spread and reset cookies. A view-through from Yahoo Finance clearly is better than MySpace.
If people are finding ads to be irrelevant and unengaging, then the view-through conversion from these social websites are valueless.
This article is a simple reminder that in whatever medium we choose, advertisers must BE RELEVANT OR BE IGNORED. It's as simple as that.
And 62% saying they've visited a brand or fan page on a social network sounds pretty good to me!