May 2009
A new report by Knowledge Networks gives advertisers, marketers and researchers a clearer picture of the motivations and attitudes of social media users–with sometimes-surprising results.
While 83% of the Internet population (ages 13 to 54) participates in social media–47% on a weekly basis–less than 5% of social media users regularly turn to these sites for guidance on purchase decisions in any of nine product/service categories.
In addition, only 16% of social media users say they are more likely to buy from companies that advertise on social sites.
Proportion of Social Media Users Who Turn to Social Media When Making Purchase Decisions (by Listed Product/Service Category & Frequency) ‘Regularly’ turn ‘Sometimes’ turn to social media to social media Travel or travel services 4% 24% Banks or financial services 4% 10% Clothes or shoes 3% 23% Eating out or restaurants 3% 21% Cell/mobile phones and service 2% 21% Personal care products 3% 15% Cars or trucks 2% 15% Groceries or food 2% 13% Prescription or OTC drugs 1% 10% "How often do you refer to social media websites or features as a resource for information, reviews, or recommendations when in the market for (category)?" Base: Social media users (N = 418)
The study, How People Use Social Media, was produced as part of The Home Technology Monitor, a service that provides highly accurate views of which media technologies people own or have access to, as well as how they are integrating those technologies into their everyday lives. The research was conducted from March 10 through 16, 2009, among 502 members of KnowledgePanel, the only online panel based on a representative sample of the full U.S. population.
‘Social media use’ was defined as having visited any one of 27 social sites or having used social features on other sites. Participation in social media is indeed widespread among those 13 to 54; but when Knowledge Networks asked users whether they regularly turn to these sites when trying to make a purchase decision, the highest per centages among nine categories were 4%, for travel and banks/financial services. Responses for clothes/shoes, restaurants, mobile phone services and five other categories ranged from 1% to 3% (see table).
Almost two thirds (63%) of social media users agree that ads are a "fair price to pay" for use of these sites and features; but a much smaller proportion (16%) say they are more likely to buy from advertising brands. "Staying connected" - to friends and family, as well as meeting new people - is by far what is "most liked" (54%) about participating in social media.
The study also shows that:
In addition, the report covers such topics as how social media use affects media choice, feelings about advertising on social media, and differences between users and non-users of social media.
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