Twitter Inc (TWTR), Facebook Inc (FB) Ads Not So Effective [SURVEY]


Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) have been trying hard to attract marketers, but a recent survey has found that the end result is not very pleasing. Gallup survey conducted in America released the results on Monday, according to which, as less as 5% of the consumers agreed that they do give importance to the advertising on social networks before they make a buy while the majority does not take its buying decisions based on it. This is rather depressing news for both the businesses and for the social network sites like Facebook and Twitter.

Old techniques more reliable

Of a sample size comprising of 18,500 respondents, 62% said that the social media ads had no impact on their buying decisions as per the findings of the State of the American Consumer report. However, Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) may find some comfort that only 48% of millennial say their buy decision is not affected by social networks, which is marginally stronger than older generations.

Old school brand campaigns and advertising techniques have much more impact on the buyers and influence their choice of brands.  Reaching out to customers through television commercials is still the most effective tool with window displays at retailers, also, doing well at attracting customers, reveal the survey.

Popular sites like Twitter Inc (NYSE:TWTR) and Facebook Inc. (NASDAQ:FB) generate huge revenues from advertising, but the users rather than spending time on commercials choose to interact more with their near and dear ones. The Gallup survey has found that people are not interested in viewing ads and are opting out from getting the advertisements popping up on their news feed.

Bad news Twitter, Facebook

This is not pleasant news for brands as they see social networking sites as a potential media for reaching out to maximum people thus adding customers and sales. At the same time, survey results are also do not favor social platforms like Facebook Inc (NASDAQ:FB), LinkedIn and Twitter Inc (NYSE:TWTR), as the industry is quite huge and last year $5.1 billion was generated from it.

The social networks are a great way to reach maximum possible consumers and influence their buying decisions has been the mantra for past few years, but the results make it clear now that though the mobile advertising industry is huge and has grown substantially over past few years, the benefits to marketers are very minimal.

If the survey results are a close representative of the habits of majority of Americans then it might divert the marketers to trying out the other reliable means of advertising, which could lower the earning potential of Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB).

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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