While advertising on these networks is considered to be vital a new survey questions their effectiveness.
Gallup has recently released the results of a social media marketing study that has suggested that this advertising channel is not nearly as effective as some of the leading networks – such as Facebook and Twitter – would have companies believe.
The recent “State of the American Consumer” report from the polling firm showed that few feel these ads work.
The Gallup poll results showed that only 5 percent of Americans feel that social media marketing has a considerable influence over the various products that they purchase. That said, a massive 62 percent of the survey participants felt that these ads had no effect at all on the decisions that they make with regards to purchasing. The survey involved the participation of 18,000 consumers in the United States.
The social media marketing study showed that offline interaction with brands were far more influential.
Participants in the survey stated that they were more heavily influenced by interactions with brands that occurred offline, such as those that occur during in-store visits and that they see in retail display windows. They felt that these were far more influential than ads that they saw over social media such as Facebook and Twitter.
It is expected that those social networks – and others – will be quite surprised by the findings, as will the brands that are expected to spend a total $11.4 billion on advertising over those two leading platforms by the close of 2014.
The Gallup report suggested that Americans are using their favorite social media platforms in order to interact with the people they know, and not necessarily the brands that they like. In fact, the publication suggested that those site users have learned to tune out the ads that are displayed in front of them while they use those social networks.
The social media marketing report said that “These channels do not motivate prospective customers to consider trying a brand or recommending a brand to others,” adding that “Therefore, if companies want to acquire new customers, their best bet is to engage their existing customers and inspire them to advocate on their behalf.”
Even though the brand spent more than usual on advertising this quarter, its results were still better than expected.
Nike has reported that even though it spent more on advertising such as social media marketing as the FIFA World Cup got underway, it still managed to achieve results that were stronger than expected for its fiscal fourth quarter.
The company has stated that strong social media played an important role in this success.
The brand explained that the gains that it experienced were the result of a number of different efforts, which include strong social media marketing campaigns, new products, and a digital advertising strategy that was well received, including the “Risk Everything” campaign. As a result of this, the company not only saw its revenues rise, but they increased notably higher than they had anticipated.
This helps to illustrate the strength of a well implemented social media marketing campaign.
It reported that its revenues rose by 11 percent to reach $7.4 billion. The Nike brand product sales increased by 13 percent to break the $7 billion mark. Its Converse revenues also rose by 15 percent, to reach $410 million. The brand also pointed out that these revenue increases were experienced in every one of its regions and in its key categories, as well as in their children’s, men’s and women’s businesses. Their profits rose by 5 percent, to hit $698 million.
According to the president and CEO of Nike, Mark Parker, “An ongoing two-way dialogue with consumers is a critical element of our digital ecosystem.” He also went on to explain that this type of interactive experience offers the brand considerable innovation driving insights that boost the connection between the consumer and the company’s brands. Social media and mobile marketing also offer a platform over which consumers can interact with each other, not just the brands, themselves.
Parker added that “Through our social media platforms, we leverage the power and passion of sport to deepen our relationship with our consumers.”
As companies and brands continue to discover the ways in which they can properly implement social media marketing campaigns, it is clear that this type of success story will become increasingly common.
