Study: Less Than 1% of Online Purchases Result from Social Media

Monday, 01 Oct 2012 07:58 AM

By Michelle Smith

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Social media has transformed the way people communicate, but not so much the way that they shop.

A new report from Forrester Research titled The Purchase Path of Online Buyers in 2012 reveals that less than 1 percent of online purchases can be traced back to social media.

A 2011 Nielsen study found that roughly one quarter of all time spent by Americans online is devoted to sites such as Facebook, Twitter, LinkedIn and Tumblr, and 70 percent of active online networkers shop online, according to Time.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

So, the minimal amount of purchases directly linked to these sites might come as a shock, but it is an issue that businesses have been contemplating for some time.

Last year, Inc. magazine ran an article revealing that many business executives had not found social media sites such as Facebook, Twitter, YouTube, MySpace and LinkedIn useful in making money.

Earlier this year, ahead of the Facebook initial public offering, General Motors announced plans to pull its ad campaign with the social media giant, Bloomberg reported. The automaker was reportedly spending about $10 million on paid advertisements, but not seeing a worthy return.

People might like the idea of being able to share or discover products on social-media platforms. Doing so might amplify brand awareness or influence purchases made later. However, this new research reveals something that many businesses have already learned: Social media is not converting individuals into impulse shoppers.

“We've known for a while that Facebook hasn't been a direct sales channel and for most companies it never will be,” Sucharita Mulpuru, author of the Forrester report, told Internet Retailer.

“Hopefully, we can put that conversation to rest now.”

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Researcher Ash: 'Odds Very Slim' Russian Central Bank Will Dare Sell Any Gold'

Sunday, 21 Dec 2014 18:35 PM

Some financial commentators have speculated that the ruble's plunge - it has dropped 44 percent against the dollar so fa . . .

Former Finance Minister: Russia Now in 'Full-Fledged Economic Crisis'

Monday, 22 Dec 2014 09:39 AM

Russia faces a full-blown economic crisis next year that will trigger a series of defaults and the loss of its investmen . . .

Hoover's Sperry: Unstable Mortgages Will Fuel Next Housing Collapse

Sunday, 21 Dec 2014 18:20 PM

Washington is pushing housing loans down the same path that led to the last financial crisis, says Paul Sperry, a media  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved