Simulación Propuesta 2

Me Kay (2008) outlines that a study on US consumers and SNSs conducted by research company International Data Corporation (IDC) showed that while SNSs are very popular, 52% of respondents in the study found advertisements on these sites

‘annoying’. Click through rates on advertisements are also quite low. The primary

reason these sites are used is for communication and so, what is important is to find the most effective means of reaching and engaging consumers via these sites. The author is clear that using traditional means of advertising simply will not work. This is a common mistake made by marketers. It must be recognised that consumer behaviour is different on social networks and consumers expect to be treated differently when they utilise social media (Williams, 2007).

An IDC survey of 3000 US online consumers illustrates that while consumers d are prepared to positively accept advertising regardless of where they are exposed to it, they are more irritated by advertisements on social networks than anywhere else online. SNS users are shown to be more tolerant of advertising in general. The report reinforces that as an active rather than passive medium, advertisements on SNSs detract from rather than enhance user experience. Furthermore, only one in four consumers finds advertisements on SNSs to be of relevance. The IDC survey states that ‘Creating ads for SNSs that are relevant, less annoying to users is your biggest challenge’. The same report also shows that SNS users, though more active online purchasers, tend not to click on advertisements on SNSs (Dangson, 2008, p. 13).

Kelly et al. (2008, p. 4) emphasise that the primary influencing factors driving advertising avoidance in online social networks are expectation of a negative experience, the relevance of the advertising message, scepticism of the advertising message and scepticism of online social networking as an advertising medium. Focus group studies and in-depth interviews conducted among SNS teenage users point to the fact that the presence of one or more of these factors negatively impact on resultant consumer behaviour to the extent that the advertising message is completely

avoided. The authors conclude by noting that 'by understanding the reasons why advertising is being avoided, strategies can be developed to lessen the probability of avoidance’.

Banner advertisements have been deemed ineffective on SNSs as members are there to connect and therefore ignore these advertisements. Advertisements that are designed on search engines are more profitable and popular as they appeal to individual purchase desires which users are experiencing at that time. This would suggest that the key to success within SNSs is to attract members when they have a need or desire for particular products and services. Stross (2008) quotes that Seth Goldstein of advertising company Social Media Networks states that a cycle is occurring. This is a cycle of ‘Advertisers distract users; users ignore; advertisers distract better; users ignore better’ is taking place. The options available to advertisers are to be more intrusive or create entertaining commercials to attract members. Being intrusive may potentially irritate members and creating commercials can be too expensive for the majority of advertisers.

Excessive advertising also irritates consumers. Burst Media (2008) point to a survey of 4,000 web users, 52.6% have a low tolerance for over two advertising units per web page. If web pages appear too cluttered with advertisements, respondents will either pay less attention to those advertisements or abandon these web pages altogether. Results of the survey also reveal that over half of respondents would develop a diminished opinion of an advertiser if their advertisement appeared on a web page that they felt was too cluttered. Careful placement of advertisements by

both SNS hosts and advertisers is necessary so as to deliver value to advertisers and maintain a positive brand image.

Cherecwich (2008) maintains that the current means of advertising via SNSs are not working as well as expected and so the hosts of these sites require a different approach. As a result, while increases in advertising spend is still expected on SNSs, it will be much less than originally projected. Zeng et al. (2009) argue that in order for members of online communities to be receptive to advertising in these communities they must be comfortable with the presence of these advertisements.

Community members typically dislike participating in communities they feel are too commercialised (Evans et al., 2001). When using SNSs, members anticipate that advertisements will be integrated into content rather than interrupting time spent online. Advertisements that disrupt activities are found to be irritating. Those advertisements that relate to the user and their needs are most effective (PWC, 2008a).

Social Advertising has also been proposed as a means of advertising on SNSs. This utilises member's contacts in targeting advertisements on SNSs, where a member indicates a particular interest. However, US users have had adverse reactions to the idea of the use of their contact information as a means of advertising. As SNS advertisements continue to demonstrate low click-through rates, the IDC highlights the need to encourage users to become more than just communicators with one another. If this can be achieved, SNSs will evolve into a type of portal, resulting in better audience reach and greater effectiveness as an advertising medium (IDC, 2008).