Report: Social advertising fails to deliver business value

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Cambridge, Mass.—Social media advertising underperforms in providing business value to companies, according to a report by Forrester Research. Forrester's “Q3 2013 North American and U.K. Digital Maturity Online” report, based on an August online survey of 395 marketers, found onsite ratings and reviews were rated No. 1 in providing the greatest business value to companies, followed by search; email; branded communities and blogs; and online display advertising. LinkedIn was rated No. 8 out of 13 channels, and YouTube was No. 10, followed by Google+, Twitter and, in last place, Facebook. “[Facebook] focuses too little on the thing marketers want most: driving genuine engagement between companies and their customers,” said Nate Elliott, Forrester VP and principal analyst, in a blog post titled “An Open Letter to Mark Zuckerberg.” Elliott said Forrester's research showed that less than 15% of Facebook ads leverage social data to target relevant audiences and that the site's static-image ad units offer marketers less impact per impression than ads on other sites.
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