Social Media is not a Flash in the Pan

Despite the invention of Social Media as a platform for fun and interaction online, it has evolved into an integral marketing and business awareness tool.  And although to all intents and purposes still in its infancy, the growth rate of Social Media within the advertising market is both astounding and longevous.

Over the past eighteen months or so there have been Social Media acquisitions and mergers abound. Facebook purchased Instagram (pipping Twitter to the post), LinkedIn bought Slideshare, Oracle purchased Vitrue for $300 million quickly followed by Involver, Salesforce snapped up Buddy Media for $689 million and CNN were rumoured to be in talks with Mashable. The list goes on, so much so that previously unconvinced investors and brands are sitting up and taking notice of Social Media marketing, particularly since Facebook raised $16 billion, providing the company with a $104.2 billion market value and adding further kudos to the cause.

Although many businesses understand the importance of Social Media for engaging with customers and clients, they do not necessarily have the resources to dedicate to it or rather they perceive that they don’t.

With the level of diversification also occurring amongst the big Social Media networking players, spearheaded currently by Facebook’s testing of an online-banking system in partnership with Australia’s Commonwealth Bank, and the possible launch of a Job Search feature to rival LinkedIn’s, many large IT companies are increasingly investing in Social Media marketing companies.

Even many of the most technophobic businesses acknowledge that a Social Media presence is now essential, so those that are not asking why Social Media marketing companies are in such high demand should be. According to a report released today by Domo and CEO.com, “while the majority of Fortune 500 CEOs have yet to pick up the pace in their personal social media efforts, it seems those who do will be better equipped to successfully grow their companies”.

Social Media: Where’s the Return on Investment?

Many businesses have yet to be convinced of the benefits of Social Media either because the very words are not synonymous with business or they cannot see how it enables them to measure ROI. As Social Media is still a fledgling phenomenon, a tangible track record is difficult to demonstrate and, although it is true that its impact does need to be measured, marketing based solely on ROI misses the point.

Rather than What’s the ROI? we should be asking What does or will success look like?  Today’s Social Media savvy consumers publish and share their customer and brand experiences, therefore it has a far greater impact on the overall customer relationship than other forms of marketing. As Social Media is also an extension of good business ethics, each interaction should be approached as a valuable exchange (i.e. interesting content or ethical bribe such as a Newsletter, free e-book, etc.) rather than a monetary Return on Investment.

If you look upon Social Media as online word of mouth, this really encapsulates its usefulness to businesses and, in the words of Ford Motors, “you can’t just say it. You have to get the people to say it to each other”. People do business with companies they know, like and trust, so every online exchange is an opportunity to nourish relationships and network beyond prospects and investors. This is what will make you money in the long run.

Contact Katherine on 01202 798270 or katherine@social-ite.co.uk to see how I can help you navigate the world of online marketing and master the metrics.