More Spending, Alternative Uses on Horizon for Social Media
Marketers continue to adjust their social media strategies and to measure the results of their investments in these programs. Tata Consultancy Services has checked out how very large businesses, those with revenue in the billions, are using this format. The company’s Mastering the Art of Digital Feedback with Social Media report predicts that retailers and CPG firms will be spending the most, on average, on this marketing format by 2015.
Tata’s report shows that some industries find that social media is naturally a good fit with consumers. These social leaders, often retailers, are selling products and services that consumers care about. As a result, these businesses have an easier time creating a ‘tribe.’
The most effective businesses also reach out to consumers on all social platforms – including blogs, online videos and mobile apps. Are these businesses spending enough on social media? The answer to that question depends on the objectives that marketers have established for social media programs. Businesses at this level allocate $88 million to their big data efforts, on average. They spend about $18.8 million on social media.
Analysts also noted while most businesses are logically allowing sales, marketing and customer service agents to monitor consumer comments, they should expand access to this data pool. Encouraging R&D and product management to review comments could result in product updates that take consumer concerns into account. This may be particularly important industries where marketers are tracking consumer trends. The survey results show this is a top goal for retailers and telecom services and equipment providers. These same 2 sectors, more than any others, believe that social media is key for improving the rest of their marketing campaigns.
This belief may explain why large retailers will be spending $31 million a year on social media by 2015. The other big spending sector will be consumer packaged goods companies with an average outlay of $30.6 million.
Will you be significantly increasing your social media budget next year?
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