Marketers continue to grapple with the social media channel and how to use it effectively as a promotional tool. In addition, they must consider how to allocate their social media budget across the multiple formats that continue to evolve. A new report shows how businesses are spending their social media budgets and which industries are leading the charge.
Tag: Social Networking
According to a new study, the visually-appealing social media site Pinterest has become a big player in an even bigger arena, with online U.S. consumers reporting that they already follow an average of 9.3 retail companies on the site. Overall, almost two out of five (38%) online consumers follow retailers through one or more social networking sites. For retailers engaged in the social media sphere, customizing their approach with social and mobile strategies is leading to social commerce success.
After suffering a slowdown along with the rest of the ad industry during the recession, social networks are on a growth trajectory this year. And this sector is growing both in the U.S. and in foreign markets. By 2011, the $2.17 billion spent on social networks in foreign markets will comprise 50.9% of global spending while the U.S. will have 49.1% or $2.09 billion of the total.
The buzz about social networking is growing but some businesses have yet to see the importance of using this new tool. Last week, I mentioned that small online retailers are moving at a slow rate when it comes to social networking. A new report in McKinsey Quarterly may help reluctant business owners see the importance of using social networking effectively.
One of the fastest growing forms of online marketing is due to see some changes next year. While MySpace has commanded the most advertising dollars when it comes to social media, likely the result of its large user base, Facebook is expected to take the top spot in 2010. This may be because Facebook surpassed MySpace on a global basis, in 2009, with respect to the number of total visitors to its site.
Marketers who are trying reach this generation’s American mom might want to update some of their assumptions. According to a white paper jointly published by Advertising Age and JWT, today’s mom is not obsessed with having it all. Survey analysts note “the second wave of feminism has wrought not only opportunities but also increased challenges, complexity and unmet expectations.”
While many marketers are just beginning the process of exploring the social networking process, others are light years ahead. A recent Wall Street Journal article describes how high-tech powerhouses like IBM and Microsoft are scanning their social networking sites for consumer videos and comments that make for good ad campaign material. As writer Emily Steel points out, this strategy moves beyond the traditional practice of incorporating focus group findings into ad campaigns.
Watch for social media to lead the digital marketing pack in 2010. That’s the word from Forbes writer Jeremiah Owyang who recently attended the Forbes CMO Summit. Owyang also cautions that effective marketers will incorporate social media with other digital efforts. For example, e-mail providers such as Silverpop and Responsys are using the power of social networks to expand the reach of e-mail.
A newly commissioned research study of nearly 4,000 moviegoers finds that an overwhelming number of people across all age groups have fully adopted digital technologies and increasingly depend on them to gain information about new movie releases and help with their decisions about which films to see. The study found that the Internet and word-of-mouth are gaining in importance (closely following in-theater trailers and TV commercials) as a way that moviegoers discover upcoming film releases and now rank ahead of traditional methods of advertising such as billboards and newspaper ads. The importance of peer group feedback (social networking, face to face interaction, texting) in the decision-making process was also a key finding of the study, with teens and young adults especially influenced by this consumer voice.
There’s no denying that consumers are increasing the time they spend on social networking sites. For marketers of consumer products, this trend offers a great opportunity to reach female shoppers. But according to a joint study by ad:tech Chicago and Q Interactive that was recently presented at an industry conference, companies that are trying to enhance their brands via social networks risk alienating consumers with their current strategy.
Does your agency Twitter? Or have a Facebook profile? If not, your agency could be missing out on a lot of free and far-reaching promotion, networking opportunities, and chances to build strong professional relationships.
Social networking has allowed for people all over the world to connect. Updating a Facebook status or Twittering have become almost second nature to some, making it possible for every move to be tracked by anyone and everyone who goes online.