Social networks struggle to generate ad revenue

Life

18 August 2009

Social networks may be popular but, as far as advertisers are concerned, the commercial benefits are yet to be proven. This is the main finding from a study by online marketers Linkshare. The company reported that of 2,000 surveyed social network users, only 4% claim to have ever clicked an advertisement.

Vouchers, sales, and other promotions were found to be the least intrusive form of advertisement by 11% of participants, and only 59% said ads were useful in making online purchases. A further 19% said they never availed of a promotional advert.

Lian Dietrich, Linkshare managing director, commented on the figures by saying that although there is a long way to go in intriguing online consumers through these outlets, advertisers should consider adapting their approach, particularly with informed sources like buyer reviews.

Another recent study performed by research group AdAge found that 83% of the top advertisers in the US were putting funds into adverts on social networks.

 

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