Are Social Media Living Up to the Hype?

15 Jul

There have been numerous reports about how effective paid social media can be in driving companies’ business. But a new study by Gallup puts some of these assumptions into question. Its conclusion? Paid messages on social media are not driving a lot of business. [Nonpaid social media reviews, stories, etc. are impactful, though.]

As Jeff Elder reports for the Wall Street Journal:

“Gallup says 62% of the more than 18,000 U.S. consumers it polled said social media had no influence on their buying decisions. Another 30% said it had some influence. U.S. companies spent $5.1 billion on social-media advertising in 2013, but Gallup says ‘consumers are highly adept at tuning out brand-related Facebook and Twitter content.’ (Gallup’s survey was conducted via the Web and mail from December 2012 to January 2013. The survey has a margin of error of plus or minus 1 percentage point.)”

“In a study last year, Nielsen Holdings NV found that global consumers trusted ads on television, print, radio, billboards and movie trailers more than social-media ads.”

Click the chart to read more.

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