
With so many companies entering the Social Media space, and with many still being skeptical, the question is still out there– Does social media work as part of a marketing strategy? Companies have said they are going to invest more in social media, but is the ROI attractive enough and can it really be measured?
Word of mouth is the key in driving growth and sales for any company. I tell you that this product is dope and you try it out for yourself, then tell your friends. Same thing can happen to kill a product or company. This ends up happening in a larger scale on social media sites. I make a post about how great this album is and the few thousand friends and followers I have (OK, I’m over-exaggerating but follow me) then read my opinion and will then give the CD a listen and potentially post their view, or start a dialogue with me and our combined followers can chime in, then their followers can chime in, and its eventually huge news across the web. This is the real key to marketing in social media, making it a topic of discussion and spreading the news. Now the issue that companies need to figure out is how to get their product or service to be a topic of discussion.
Here are a few key things that companies need to understand when building their social media plan:
People do not want to be blatantly marketed to when they’re trying to post up photos or update the status. Just having banner ads on Facebook isn’t going to get through the return you want. It’s estimated that the click through rate for such banner ads are at 0.04%. The key to getting your message to the potential 300+ million users is through Social Ads of Facebook. This is where companies create a Fan Page for their brand or product and users can become fans and receive the content in their feed that is posted on these specific pages. When users become fans of these pages, a feed goes through to the users friends messaging that the user has become a fan, for example “Nnenna is now a fan of Da Dirty 30″ (I would be if Cru have a fan page). So now my friends have the potential to see this. I say potential because only the friend that subscribe to my feed will get this message, but subscribing to friends feeds is a default so most subscribe to all their friends.These Posts have an estimated CTR of 6.5%.
Facebook Connect makes it easy for users to bring all of their information to third-party sites, and also share information from third-parties with their friends on Facebook. I won’t get into the full breakdown, just check the link, but over 10,000 companies have integrated it into their websites, and, according to Facebook, saw a 30-200% increase in registration on their sites, and a 15-100% increase in user engagement through reviews and other user generated content.
Just because you hear about Twitter, Tweets, Twitpics, and Twexting (OK, I made that one up), doesn’t mean you can just throw up a twitter page and that’s how you execute your social media strategy. Twitter is a hard social network to market through, because it is the least involved of all networks. Users provide little information and speak to each other 140 characters at a time. The most popular discussion on Twitter are current events and pop-culture. Some other facts about Twitter than many companies don’t realize is:
Twitter growth has slowed- Since its peak at 29.2 million users in July, Twitter has dropped down to 23.6 million U.S. uniques, a loss of nearly 24 percent.
- Older Demographic- The majority of Twitterers (Tweeters?) are 25 to 54. So if your product is for the next generation of web users..don’t look for them on Twitter. They do love Ustream though.
- Twitter is a huge promotional tool- Businesses and celebrities make up a majority of Twitter:
- Among Twitter users, the median number of lifetime tweets per user is one. This translates into over half of Twitter users tweeting less than once every 74 days.
- The top 10% of prolific Twitter users accounted for over 90% of tweets. This means Twitters are just being communicated to but not engaging in these communications (Retweeting, conversing about the topic, etc).
- Less than 10% of Tweets are considered of Pass-along value- These are tweets that are retweeted by users.
I write this all to say his, companies are smart to take advantage of social media but they must recognize it is a science. You can use social media completely wrong or you can be a company like Amazon and iTunes that uses it properly.