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Are social media ads really worth it?

posted on June 10, 2022

When planning your overall marketing strategy, many small companies ponder whether paid advertising, especially out on the social media platforms, is something that should be in the mix. The challenge in deciding if this would be worth looking into tends to be a lack of overall data. What ads actually work? Where is my target demographic hanging out? In some recently published research data, Unsupervised, a business data analysis firm, went out and surveyed over 1000 consumers and came up with some surprising data. The following comes directly from their published data:

  • To begin with, we asked respondents to reflect on the platforms where they encounter ads. Specifically, we wanted to know how an ad’s location can affect consumer perception and interaction levels. Instagram was not only the most trustworthy digital platform but also the platform respondents reported buying from the most overall. Instagram also boasted the highest amount spent on individual purchases, with users spending an average of $300. With high levels of trust and conversion, Instagram appears to be a prime platform on which to advertise. Plus, with nearly 1.5 billion users, it is the perfect place for ads to be seen by many eyes.

  • In general, ads were considered most appealing when they were realistic and familiar, with 43% liking relatable ads, 40% appreciating those from brands they already supported, and 21% enjoying when an ad used a well-known song. Often, Americans were repelled by ads that included the opposite, with celebrity endorsements and unrealistic characters being the two most disliked features.
  • In general, ads were considered most appealing when they were realistic and familiar, with 43% liking relatable ads, 40% appreciating those from brands they already supported, and 21% enjoying when an ad used a well-known song. Often, Americans were repelled by ads that included the opposite, with celebrity endorsements and unrealistic characters being the two most disliked features.

  • Generations also differed in their trust of influencers, and once again, younger generations were more approving than the older ones. The development of influencer marketing has been incredibly fast, growing from an industry worth an estimated $1.7 billion in 2016 to $13.8 billion in 2021.
  • Others found ways to skip the ads in order to continue using their favorite sites. Over half of respondents said they used some type of ad blocker. And while baby boomers were the generation least likely to use a blocker, an unexpected 45% of them had, while a slightly smaller overall percentage said they paid for premium subscriptions to avoid ads.

-Written by Kevin Sawyer

written by SearchPro Systems

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