Does advertising in social media gains profit?

The news item ´How to increase revenue through social media´ attract my attention. According to research by Knowledge Networks only 16% of the Internet users can be influenced by ads on social sites. While 83% of the Internet users between 13 and 54 years old participate in social media, uses less than 4% social media regularly for product orientation! I found this a remarkable finding, this means that a few customers are open to commercial incentives on their social profiles. The traditional way of advertising in social media is less profitable than I thought because 84% of the users do not read the ads.

Please, watch underneath video and conclude afterwards if social media is a fad!