April 23rd, 2014There once was a time when social media was the solution to all of advertising’s woes. Social media was to replace antiquated interruptive advertising techniques by allowing customers to have “relationships” with brands. Brands could “join the conversation” and let customers “tell their story” too. All of this “engagement” would be called “earned media’ instead of paid media. But reality has struck, we’ve all been duped (including me) and it looks like what really matters is what has always mattered: interrupting people with interesting ideas about interesting products.
From Forrester “Social tactics are not meaningful sales drivers. Forty-eight percent of consumers reported that social media posts are a great way to discover new products, brands, trends, or retailers, but less than 1% of transactions could be traced back to trackable social links.”
Sure, the same arguments are still valid: social media (and display ads) has an impact the same way TV ads have an impact – people just don’t click through as much so the influence doesn’t show up in the data. Another valid argument is that most brands still just aren’t using social media right: they post self serving drivel that no one cares about.
But consider this quote directly from Facebook: After instigating the biggest bait and switch in ad history, Facebook has the audacity to say in Time Magazine, “Like many mediums, if businesses want to make sure that people see their content, the best strategy is, and always has been, paid advertising.” Facebook itself concedes that trying to market a product by engaging a community with posts is ineffective.