Social Media Driving Consumer Behavioral Changes

by Jack Loechner, Jun 16, 2010, 8:15 AM

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According to a recent report from ROI Research Inc., sponsored by Performics, "S-Net The Impact of Social Media," social media permeates consumers' lives and affects communication, shopping and other activities, driving changes in consumer behavior online.

The study of 3,000 U.S. social network users delved deeper into how social sites affect family and friend relationships and consumer attitudes towards brands and products:

• 80% of respondents have an active Facebook account, and 23% of those without an active Facebook account plan to join in the next month
• 67% of respondents have reconnected with people through social networking sites that they never would have otherwise
• 39% of Twitter users respond to other people's tweets once a week or more
• 30% of respondents access Facebook and/or Twitter from their mobile phone (through a browser or application) once a day or more

Active Social Networking Account Holders (% of Respondents)
Social Account	October 2009	April 2010	% Change
Facebook	71%	80%	+13%
MySpace	44%	37%	-16%
You Tube	39%	37%	-5%
Windows Live	33%	19%	-42%
Classmates.com	26%	20%	-23%
Twitter	22%	19%	-14%
In	11%	10%	-9%
Source: ROI Research, June 2010

Daina Middleton, CEO of Performics, says "Social networks have made... substantial changes in the lives of their users... (as they) more actively participate with brands and each other... More than a third of all respondents reported using a search engine to further learn after seeing an ad on a social networking site... more than a third think social networking sites are good sources of information about companies and products..."

 Consumers reported a desire to connect with brands throughout the study:

• 50% of Facebook users click on Facebook ads to "like" a brand
• 37% learned about a new product or service from a social networking site
• 32% of respondents have recommended a product/service/brand to friends via a social networking site
• 32% of Twitter users re-tweet content provided by a company or product

Access Via Mobile Once a Day or More (April 2010)
Social Network	% Accessing	Change From Oct, 2009
Facebook	32%	+23%
Twitter	30	+15
You Tube	22	+22
Source: ROI Research, June 2010

Middleton added that "... it's a groundswell of technology-enabled word of mouth...  shifting from strict consumerism to... two-way participation between brands and everyday customers..."

Frequency of Activities on Facebook (% of Respondents)
Social Activity	Facebook Respondents (Once a week or more)	Twitter Respondents (At least once a week)
Make comments about other people's post	54%
Visit company or product pages	25%
Login to other sites using Facebook	25%
Share an opinion about a company	22%	33%
Click on an ad on Facebook	22%
Make a recommendation	20%	32%
Re-post content	19%
Ask for a product or service	17%	30%
Source: ROI Research, June 2010

Scott Haiges, president of ROI Research, concludes that "... users are not only satisfied, they want more... respondents expressed a strong desire to get:

• More printable coupons [49%]
• Notifications of sales and special deals [46%]
• Information about new products [35%]

And, eCommerce predicts that by end of 2010, almost 9 out of 10 corporate businesses will engage through social networking portals. On Facebook, says research from ComScore, the visitors who spend the most time on the site also spend the most dollars on online shopping, with an average of $67 in spending for the top 20% of visitors.

Average Online Spending by Time Spent on Facebook & Twitter ($ in Q1, 2010)
Type of User	Facebook Spenders	Twitter Spenders
Heavy	$67	$43
Medium	61	75
Light	50	73
Non-visitor	27	43
Source: ComScore, May 2010 (User: Heavy, top 20% of visitors by time spent on site; Medium, next 30%, Light, lowest 50%)

The comScore research report says that people using Twitter are more likely to purchase Online than people using Facebook, who tend to communicate or play games. Twitter users are more interested in updates from brands, and the amount of information about products and services are more available through Twitter than Facebook, notes the comScore study.

For more information about the study and Performics, please visit here.

 

 

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0 comments on "Social Media Driving Consumer Behavioral Changes".

1. Rick Simmons from Dinkum Interactive
   

   commented on: June 16, 2010 at 8:26 a.m.

   The bigger question is what percentage of the population is involved with these tools and the answer is that the VAST majority still do not embrace the tools this way. While the numbers of users and pundits increase daily the bigger number is still with those not participating.

   More needs to be said about them instead of the fixation on those already embracing the tools - just an opinion.

2. Evan W from Experience Advertising, Inc.
   

   commented on: June 16, 2010 at 9:39 a.m.

   This is why money is starting to flow into these channel...

3. Candice Seiger from Luminosity Marketing
   

   commented on: June 17, 2010 at 12:42 p.m.

   Rick, you are totally correct.

   A stat at the MRA Annual Conference last week stated at only 6% of online adults generate 80% of 101 billion influence impressions. Obviously there is lots of chatter but most consumers aren't creating it and only some are experiencing it.

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