A new report has found that 83% of the US online population now use social media in some form, with more than half using it on a regular basis.
However, according to the Knowledge Networks report, social media has failed to demonstrate its usefulness as a marketing tool.
The report was based on a survey of 418 social media users responding to the question “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]?”
Knowledge Networks found that the value of social media advertising was well below word of mouth (WOM) recommendations and TV advertising.
Overall, less than 5% of social media users regularly visit such networks for “guidance on purchase decisions”.
The research was conducted from 10 to 16 March 2009, among 502 members of an online panel based on a representative sample of the full US population.
eMarketer published a report in March predicting growth of 17.3% for global spending on social media advertising in 2009.
Marketers are forecast to invest $2.35 billion (£1.64 billion) on ads on social networking sites by the end of 2009, with this figure rising to $3.49 billion over the next four years (see Global adspend on social media predicted to rise 17.3% in 2009).
Research by Nielsen, also released in March, found that member communities – a category including social networks and blogs – has become the fourth most popular category online, visited by over two-thirds (67%) of the global online population (see Social networks and blogs increase in popularity).
