Understanding Social Media
MySpace, Facebook, Flickr, LinkedIn, YouTube, Twitter, Google Groups, Second Life, Wikipedia—these are just some of the social media networks that most of us are familiar with. Social media is the name given to the online integration of technology and people. Whether it’s the exchange of pictures or videos, or joining forums or blogs, social media is how today’s interconnected, online community interacts.
What this means to businesses and marketers is a new paradigm in how they reach their audience. Social media is making an impact on all aspects of business communications today. Consumers by the millions have joined the online conversation to post their opinions and share their experiences. In 2006, Time magazine editors named “You” as its Person of the Year as a result of consumers taking control of global media, and Advertising Age magazine named “You” as its “Agency of the Year,” acknowledging that consumers are in charge of their own marketing experience and are creating a digital democracy.
Communication activities split the time that consumers spend online with content, and these two combined outstrip time spent online with commerce and search. Information delivery is no longer a one-way push. Websites are collaborative environments where the audience is very much involved in shaping brand experiences. The opportunity for marketers is clear; they have the ability to tap into networks of people who are passionate about their brand. These people create a “momentum effect”—passing the brand message along to everyone in their network.
- 30 percent of frequent social networkers trust their peers’ opinions when making a major purchase decision, but only 10 percent trust an advertisement. (1)
- 77% of online shoppers read consumer reviews and ratings before making a purchase. (2)
- $2 billion of online travel purchases a year are affected by social media. (3)
- 24% of online car shoppers have changed their mind about a vehicle purchase based on social media. (4)
In the best case scenario, the online conversations that consumers are having about your brand are positive. However, social media increases the number of potential critics. People don’t need qualifications of credentials to have influence. Opinions about your brand are public and searchable.
Companies can monitor the online conversations and be ready to immediately respond to incorrect information. Monitoring social media closely also allows a company to understand how their brand is being perceived. It also provides valuable insight into competitors and customer preferences.
By monitoring social media carefully, companies can learn what influences are driving online conversations. They can measure the growth of emerging trends and identify ideas for new products and opportunities. With the knowledge gained, companies can improve engagement with their customers by creating new marketing techniques to reach consumers.
One of the greatest benefits that companies gain from the two-way conversation that results from social media is the opportunity to collect detailed information on users and their habits. A company’s marketing team can get real feedback and suggestions. This will allow them to refine their product and message to better meet consumers’ demands. The opportunities for companies to understand and work with their customers have never been greater.
Some companies are actively reaching out to their audience through social media and affecting change. In 2003, Robert Scoble joined Microsoft and started blogging about the company. He created an open dialogue with his audience and shifted public opinion about the company to a more positive view. He succeeded where public relations had been failing for years.
In the summer of 2007, Target created a social media campaign on Facebook that was called a “Dorm Survival Guide.” They offered advice and tips to college newcomers. By the end of the campaign they had over 7,000 members. The campaign is considered a huge success. The key to the campaign was building a dialogue with visitors and providing them with useful information rather than immediately trying to sell them products.
Companies have never had a greater opportunity to converse with their audience. You have the ability to determine and measure goals, and offer value. You can use social media to actively promote your company and engage your audience through blogs, forums, and online communities. You can gather information about your audience and monitor trends to gain insight into new opportunities.
It’s imperative that marketers include social media as an integral component of their marketing strategy. The landscape is shifting daily; ask for feedback and listen to what your customers tell you.
Sources
1, 2: Jupiter Research—“Retail Marketing: Driving Sales Through Consumer-Created Content,” 2007; 3, 4: Compete “Embracing Consumer Buzz Creates Measurement Challenges for Marketers,” 2007.
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