14 DAY TRIAL // Social networking looks like the way to go for companies trying to promote their brands and products. In fact, the general conception is becoming that if you aren't on Twitter and if you aren't on Facebook you don't exist, especially for the younger crowds. But a new study shows surprising results. Only 5 percent of users look to social networks for guidance in purchase decisions.
The study, conducted by Knowledge Networks, shows that while 83 percent of all Internet users, aged 13-45, use social networks and 47 percent do it regularly, on a weekly basis, only 5 percent are influenced in their purchasing decisions and seek guidance from these types of sites. Also, only 16 percent are more likely to purchase products from companies that advertise on social networking sites. However, the majority of users believe that ads on social networking sites are a "fair price to pay" as a tradeoff for getting to use the services for free.
"Our findings show that marketers need to be prudent and people-centric in how they approach social media," said 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 – so finding ways to embrace that powerful function is key. The fact that they are using social media more now than a year ago is a strong indicator that the influence of these sites and features is here to stay."
Most users, as it was to be expected, said that “staying connected” with friends and family was the most important feature of social media. Also, how often the ones asked used social networking sites fluctuated over time with 34 percent saying that they used them more than a year ago while 18 percent are using them less.
The findings would indicate that, while it isn't necessarily useless for a company to have a presence on these types of sites, they do have a lot to learn about understanding how they work and how to use them to actually have sales.