We're a little late to the party on this one, but we just wanted to comment on a recent study by Knowledge Networks claiming that "social media doesn't drive purchases." At first glance, the data might seem compelling: fewer than 5% of respondents "regularly turn to these sites for guidance on purchase decisions."
That might be enough to turn off marketers already skeptical about social media. But as Marketing Pilgrim points out, anyone who actually uses social media sites will immediately recognize that these findings just don't hold up.
When we're considering a purchase, do we turn to our friends on Facebook and ask for their input? No, not really (though we have some friends who do). However, if a Facebook friend posts a status update about a local sandwich shop or a new smartphone (positive or negative), we've been known to take mental note. In other words, we wouldn't say that Facebook has a direct and concrete influence on purchasing decisions, but friends' recommendations can have a much subtler and more powerful pull than other, more direct forms of marketing.
That's because social media sites tend to work just like any other word-of-mouth. When we're out drinking with friends, it's perfectly natural for us to talk about products that we like or don't like, and those conversations can have a huge influence on purchasing decisions. But we're not in the habit of scheduling lunch with friends just to talk about products. So if asked whether we turn to friends in order to make purchasing decisions, most of us would probably say no...even if, upon closer inspection, that's not entirely true.
Another problem is how the Knowledge Networks study defines social media, asking respondents to limit themselves to "27 pre-specified social media sites." Among these sites are dubious contenders like Classmates.com and no mention of opinion sites like Yelp. Yelp might not be strictly defined as a social networking site, but if you, too, have Facebook friends who frequently update their profiles with Yelp recommendations, then it's safe to say that popular opinion sites are intimately connected to the social media phenomenon.
Anyway, all of this loops back to the problem of metrics: it's outrageously difficult to pinpoint the purchasing influence of something as amorphous as a social network. And we're sad to say that, as arresting as the Knowledge Networks study might seem, this new study just doesn't make a strong enough case against the power and potential of social media.
