Just 3.5 per cent paid ads on social media sites affect the buying behaviour of online users, down from 9 per cent in 2009, according to research by online marketing firm LinkShare.
The study, which examined the effectiveness of online marketing on purchasing decisions of over 2,000 consumers, found that only 1.7 per cent of respondents on professional networks such as LinkedIn said the ads helped them make buying decisions against 5 per cent in 2009.
The report noted that there was no connection between the high number of people using social networks and the low click-through rates.
LinkShare managing director Liane Dietrich has been quoted as saying: "Despite there being more advertisers on Facebook, marketers don't seem to be fulfilling the site's potential."
The research also revealed that just 2.6 per cent of people found brands using Twitter to be an effective way of influencing purchase decisions.
