Can Social Networking be the future of Online Advertising?

Companies who are looking to social marketing as the future of online advertising may have to rewrite their plans after the latest IDC reports confirmed that advertising through the medium has not become as popular as hoped.

The recent survey has discovered that although over 60% of social network users spend an average of half an hour using the site at a time, that advertising on these sites receive less attention than other forms adverts made by a full service advertising agency.

IDC also confirmed that the conversion rates are lower for sites like Facebook and Myspace, yet traditional internet advertising still flourish. Interestingly the social networking sites are doing better for click through rates yet stumbling when it comes to completing a sale or purchase.

Approximately 7% of traditional advertising users clicked through before 23% making a purchase. In comparison the social networking sites have received clicks from 57% of users with only 11% going on to make a purchase. This maybe deemed as a problem but what is better, 23% of 7% or 11% of 57%? Maybe social advertising isn’t as bad after all?

Another interesting report this week showed that (out of children surveyed) 100% of children between the age of 12 and 14 have access to the internet. Something that possibly shows that online advertising is the future.