Has social advertising broken through as a purchase driver?
Through a special arrangement, presented here for discussion is a summary of a current article from MarketingCharts, a Watershed Publishing publication providing up-to-to-minute data and research to marketers.
Social media ads have seen rapid spending increases in recent years, and that increasing flow of money is having a profound effect on social advertising’s status as a consumer purchase influencer, according to MarketingCharts’ 3rd annual “Advertising Channels with the Largest Purchase Influence on Consumers” report. As a result, social ads now are said to influence purchases for more American adults than radio ads, despite having lower reach among the adult population.
Not surprisingly, social ads have their largest impact on youth. This year, one in five Millennials (18-34) surveyed report having made a purchase in the prior six months due to ads on social networks. That marks a 65 percent jump from the 2014 study, in which fewer than one in eight (12.1 percent) reported such an influence from social ads.
That increase catapults social ads into the realm of the top purchase influencers for Millennials. Ads on social platforms outrank direct mail, radio, print and a host of other media as stated purchase influencers for this demographic and are closing in on TV advertising (cited by 25.8 percent as having led to a purchase).
Part of social ads’ rise in perceived influence can probably be attributed to a greater presence. In a new addition this year, the study ranks the media in which consumers feel most exposed to advertising. The top response for Millennials? Social media.
The next-leading location for Millennials’ ad exposure is smartphones, a result that is likely tied to the prominence of social media use on these devices. One cautionary note on social media’s reach came from a recent IAB study on multiscreen video that showed almost half of Millennials (18-34) felt that there are too many ads on their smartphones, compared to one-third who feel that way about ads on their desktops.
- Social Advertising Makes Big Headway As Consumer Purchase Influencer – MarketingCharts
- 3rd Annual “Advertising Channels With the Largest Purchase Influence on Consumers” Study – MarketingCharts
- How Are Consumers Spending Their Time Online? – MarketingCharts
- Ad Clutter A Bigger Problem on Smartphones Than Desktops, Millennials Say – MarketingCharts
- Traditional TV Viewing: What A Difference 5 Years Makes – MarketingCharts
DISCUSSION QUESTIONS: Will social media soon eclipse television ads as the leading purchase influencer? What factors are still restraining social media’s impact as a purchase driver and the ability for stores to capitalize on its reach?