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November 26, 2008
Only 11% of Social Network Users Will Make a Purchase Based on Advertising
It's no secret that social networks have had a difficult time integrating advertising that has a bang for its buck. IDC has released some data showing what social networks - and advertisers - are faced with.
Only 57% of social network users have clicked on an ad in the last year versus 79% of all users in the rest of the web.
When it comes to purchasing, only 11% of social network users will actually make one compared to 23% of the rest of the internet.
"The thinking has been that the popularity of SNS will attract a big audience and generate a lot of traffic, which in turn will produce enormous amounts of user-generated content (UGC) and therefore advertising inventory – without any expenses for editorial staff or content distribution deals," said Karsten Weide, program director, Digital Marketplace: Media and Advertising. "All of the above has proven true – except that almost invariably, SNS have had a hard time selling this inventory."
Related Reading:
The Number of Small Businesses Using Social Media to Double in 12 Months
MySpace Launches Self-Service Ad Platform
93% of Americans Expect Companies to Have Social Media Presence
Posted by Nathania Johnson on November 26, 2008 8:44 AM
