A poll conducted by affiliate network LinkShare found that very few consumers had ever clicked an ad on a social network (just 4% of the 2000 polled). An article in the Telegraph about the study noted that while that may be true, Facebook has still signed deals with 83 of the top 100 advertisers in the US. While the study seems to indicate that interest in these sorts of ads is very low, their growing use among major brands seems to say otherwise.

As noted by multiple commentators in the article, low click-through-rates in these sorts of environments are to be expected. People are busy posting pictures and commenting on their friends’ latest updates. Most of them aren’t shopping. Still, with the right targeting and message, social network ads can be very effective. The ads are inexpensive, and when people do decide to pay attention, it is the right people who are looking.

Our own experience on Facebook seems to confirm this. Click-through-rates on Facebook ads are very low, especially when compared to search engine ads. It is reasonable to assume that among all the clutter of a social site like Facebook, people frequently just overlook, or ignore the ads. But when we do catch someone’s eye, we try to have something that’s relevant to them. Something that catches their interest and gets the click, without setting them up for a let down when they arrive on the advertiser’s site (if you promise free ponies in the ad, there better be a way to get free ponies on your site).

It can be a delicate balance, but it does work. We think that over time, advertisers will learn more about the things that will get a response on social networks and their ads will become more effective. Either that or Facebook will run out of money.