Social media as a marketing tool – is there a future? December 2, 2008

Social media is defined as internet-based tools for sharing and discussing information among online users. The term most often refers to activities that integrate technology, social interaction, and the construction of words, pictures, videos and audio (Referencee.com, 2008). Although the beginning of social media can be traced back to early web logs on Usenet groups and Bulletin Board Systems in the 80’s, it really began to take shape in 90’s and has continued to grow at an exponential rate over the past few years.

What is unique about social media sites is that its intention and focus really lies outside of online business and industrial uses. Its focus was to remain on the outskirts of commercialization and center more so on the human to human interaction, much like clubs, personal discussions and groups of family and friends. That’s changing, though.

Marketers recognized almost immediately the unique power of social media networks. It provided them with distinct groups of users with shared interests. It offered a unique opportunity for these outspoken users to discuss more than just concepts, but brands. Former chairman of the Internet Advertising Bureau Lloyd Salmons stated, “Social media isn’t just about big networks like Facebook and MySpace, it’s about brands having conversations,” (Referencee.com, 2008).

Although millions, maybe billions have already been invested by brands into marketing through social media vehicles, I wonder if there is a future in this effort.

A study conducted by JupitorResearch of 10,000 European and American executives founds that the return on these marketing investments was low. An investment of $30,000 may only create a connection with 1,000 friends or less through a branded social network. The study also found that three quarters of all marketers are not measuring the success of social media marketing campaigns (Pfauth, May 15, 2008).

As I’ve pointed out in previous blogs, word-of-mouth is many times the most effective form of marketing. And, social media networks are essentially very large communities that rely on word-of-mouth. RoperASW pollsters Ed Keller and Jon Berry contend that word of mouth is still the most effective way to build a brand (Frost, February 9, 2004).

In order for social media marketing to ever success, brands cannot approach it as any traditional form of advertising. Brand message cannot be contrived and shaped by marketers. Creating a forum for a conversation should be the focus, not interjecting into the conversation and attempting to change thoughts. And, finally, marketers must measure their success, even if it’s just through brand awareness.

The online conversations of brands will continue, but it may be time for the brands adjust their approach or decide to step aside.

References

Frost, Randall (February 9, 2004) Gaining Influence by Word of Mouth. Retrieved on December 2, 2008 from http://www.brandchannel.com/features_effect.asp?pf_id=196.

Pfauth, Ernst-Jan (May 15, 2008) Social media marketing might have a limited future. Retrieved on December 2, 2008 from http://thenextweb.com/2008/05/15/social-media-marketing-might-have-a-limited-future/.

Reference.com (2008) Retrieved on December 2, 2008 from http://www.reference.com/search?q=Social+media

A few of my favorite things… November 11, 2008

The discussion about blogs this week got me thinking about the absolute incredible variety of blogs that exist out there. So, in an effort to find some of the unique blogs, I went searching. Here’s some that made me laugh and some that just enjoyed visiting….

The Poop – This is a blog for parents in the San Franciso Bay area. It’s a lackluster site, but I just loved the name of this one.

Funatiq – This site is dedicated to everything funny. There are some really great examples of funny advertisements and just comical thoughts about life.

Junk Food blog – This site analyzes everything from the latest products launches to the adventures of a man who has eaten 23,000 Big Macs.

Strange maps – This blogger has an interest in all things maps. His site offers a variety of photos and stories about how different maps are used. It’s an interesting topic. What I found most interesting, though, is that he solicits donations to keep the site going.

Thrift Shop Romantic – This is a great idea blog for anyone who enjoys shopping at second-hand stores. There are great decorating ideas.

Strange New Products – The blog talks about, well, strange new products. Everything from travel fruit skewers to fart pads.

Found any good blogs? Let me know! Let’s keep it clean, though.

Breaking the law November 10, 2008

Several concepts were brought up in our class discussion this week about these unofficial blogs. One concept that intrigued me was the notion that some of these more positive sites could be planted by the brand themselves. Or, this circumstance could stand to hurt brands, when competitors post very negative blogs. Hmmm. Interesting concept, and one which I can definitely see happening.

One of the most enticing aspects of traveling through the blogosphere is the ability to remain anonymous. It’s this anonymity, though, that allows companies to pose as bloggers who genuinely want to make a comment about a product or a topic.

Blogger Dave Taylor wrote an excellent piece on this topic. In his blog he includes a quote from the original Times Online article:

“Hotels, restaurants and online shops that post glowing reviews about themselves under false identities could face criminal prosecution under new rules that come into force next year. Businesses which write fake blog entries or create whole websites purporting to be from customers will fall foul of a European directive banning them from ‘falsely representing oneself as a consumer’,” (Palmer, September 21, 2008)

The term ‘sock-puppet’ reviews or weblogs have been used to describe this act. And, recently in the United Kingdom there was a law passed to prohibit such acts. Essentially the law recognizes these sock-puppet comments and sites as a form of fraud. They are, but I’m curious if this is really the best way to regulate it. Also, I fear that this type of regulatory move onto the internet begins to open the door to other stricter controls from government entities.

What are your thoughts on regulating these false or misleading online comments?

Reference

Palmer, Robert (September 21, 2008) Interviews suggest iPhone develope experience not too bad so far. Retrieved on November 10, 2008 from http://www.tuaw.com/tag/dave+taylor/.