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Product Recommendations Remain Low on Social Networks

March 31, 2011 By: azjogger Category: Marketing, Social media, Technology

From: e-Marketer
 
Old-fashioned conversation still fosters the most word-of-mouth

Social media is known as a venue for brand discussions, but social sites, and digital in general, are still not the first choice for shoppers talking brands.

A December 2010 survey by loyalty marketing researcher COLLOQUY found that several more traditional methods of discussion came out far ahead of social networking when consumers were asked how they share information about products and services. Face-to-face conversation was the No. 1 channel, even among young adults.

The digital channel used most for product discussions was mobile—when used for conversations, however, not text messages. Only 35% of the overall population, and 56% of the young adult population, talked about products and services on social sites.

Meanwhile, consumers’ overall likelihood of recommending products may be decreasing. The COLLOQUY report suggested that the reason for a nearly 20-point drop in respondents saying they often recommend products or services to others is due to the economic downturn. Cash-strapped shoppers are less likely to be purchasing new-to-them items deemed worthy of discussion.

If overall brand conversations are decreasing, it could be hampering growth in those conversations on the social web. Earlier research suggests the figure for social network product discussions has been about one-third or lower for a while. An April 2010 survey from ROI Research found that 33% of Twitter users shared product opinions weekly; about a fifth of Facebook users did the same. A Harris Poll taken the same month found 19% of US social media users shared product reviews and recommendations. Meanwhile, research has consistently shown figures in the 70% to 80% range for face-to-face discussions.

The wide usage of social media and viral nature of discussions mean product recommendations on services like Facebook and Twitter are still worth fostering, but marketers must remember most word-of-mouth tips are still unseen—and untrackable—as part of consumers’ everyday conversations.

For complete data charts and story, go to e-Marketer.com

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Boomers and Seniors Flock to Social Networking

September 03, 2010 By: azjogger Category: Marketing, Social media

From e-Marketer

More than a quarter of web users 65 and up now visiting social networks
Older web users are flocking to social networks, according to a May 2010 Pew Internet & American Life Project survey. Usage among internet users ages 50 and older nearly doubled during the past year, from 22% to 42%.

More specifically, 47% of 50-to-64-year-old internet users and 26% of seniors ages 65 and up indicate that they now use these sites, with Facebook and LinkedIn being the main beneficiaries of the more mature traffic.

These rates are fairly close to eMarketer predictions from April 2010, which estimated the largest jumps in social networking site usage would occur among the oldest users.

With even seniors catching the wave of social networking, the phenomenon’s mass appeal is undeniable for marketers. Facebook announced its 500 millionth user in June, and marketers have begun to pour real dollars into the channel. eMarketer estimates US ad spending on Facebook will rise to $1.1 billion next year, up from $835 million in 2010.

Pew offered three reasons for social networking’s appeal to older adults:

They want to reconnect with people from their past. As a gathering place for multiple generations, social networks are useful to parents for learning about the lives of their children and grandchildren.

People with chronic diseases are more likely to reach out to others online, and older people are more likely to have a chronic disease.

But those first two reasons are also a good indication of why young people may begin shying away from Facebook and having conversations elsewhere, if they haven’t already. Already hyper-vigilant about their privacy and what they share, young users may stop considering social networks cool when their parents join—let alone their grandparents.

Meanwhile, as teens and millennials grow up and enter the work force, instead of reconnecting, they may actually want to disassociate themselves from past immaturities and prying eyes in what is an increasingly public setting.

The mass appeal of Facebook is a boon in the short term for marketers looking for reach in an age of media fragmentation. But as the site tries to be everything to everyone, marketers included, that may prove to be too much for some, just as it was for MySpace.

For complete data charts and story, go to eMarketer.com

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