Commentary

Social Media Driving Consumer Behavioral Changes

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.

 

 

3 comments about "Social Media Driving Consumer Behavioral Changes".
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  1. Rick Simmons from Dinkum Interactive, 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., 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, 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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