Digital Media Buzz > Power to the People: How Social Media Is Changing The Rules of Business

Power to the People: How Social Media Is Changing The Rules of Business

By John Greaves

Since the first social network site launched in 1997, social media has grown to affect how we get our news, our daily interactions and is slowly changing the way we handle our careers and how we teach our children.

The advertising community especially feels pressure to navigate the social media tide so its clients ride the Social Network Service (SNS) wave rather than being drowned by the undertow. According to Gretchen Ramsey of Oxford Communications “If you’re not engaged and engaging you really have no voice. The shift is not even a choice, it’s a requirement.”

According to social media strategist Carisa Miklusak, “What allows social media to make such an impact on businesses is the trust that exists between users. A member of a social network holds a much higher degree of trust for another member of that network than they do for an organization’s brand.” Witness direct marketing’s failure. “Organizations that went to market with direct sales messages via social mediums learned the hard way that social audiences do not respond to this type of communication,” Miklusak says.

Social media expert and CEO of ViTrue Reggie Bradford says this should create a closer bond between brands and consumers. “What we see as exciting is: as consumers have gotten educated in mainstream, the brand marketers are now rapidly adopting social media as a way to build meaningful relationships,” Bradford says.

These relationships are critical, says social marketing consultant Alex Hillinger. “Social media has created a platform to let consumers voice their opinions and if companies are listening, a dialogue is created. If they’re not listening, their competitors probably are and customers know they can go elsewhere and be heard,” Hillinger says. But many companies are listening and responding with localized, grassroots approaches.

“The greatest role of social media is to create disciples to your brand,” Oxford Communications’ Ramsey says. “In New Jersey and New York, Quikcheck Convenience Stores has been able to give back to consumers that are really proselytizing on their behalf. These are the disciples of the brand already so they do special things for them like a free lunch on Friday.”

Social media strategist Amy Porterfield anticipates more exclusivity with tailored approaches to accommodate consumers who opt for product information. “Studies show people are willing to pay for exclusive network content if you’re going to give them the content they want,” she says. According to Bradford, “The big advantage is 80 percent of consumers buy products based upon friend recommendations. You opt in to a premium site and put it in your newsfeed, and your friends will see it.”

Exclusivity notwithstanding, Facebook and Twitter should remain at the top of the branding and awareness food chain according to social media guru Jordan Kasteler, while Digg.com and StumbleUpon will add value to those interested in increased traffic. “I’d put my money on Twitter but it’s still growing right now so the user base, while growing rapidly, doesn’t even compare to Facebook,” says Kasteler, who has worked in social media since 2001. “Facebook ads are fairly cheap and allow you to target your demographic very closely to ensure maximum Return On Ad Spend [ROAS].”

Bradford, who tracks click through rates on Facebook agrees. “Each Facebook wall post generates a 7.5 percent click through rate, whereas a banner ad is .01 percent,” Bradford says.

Social Media 101
While some question whether leadership should be involved, most experts agree that authenticity demands that someone from your company be designated to monitor your company’s social media presence. Many companies who currently discourage social media interaction during work hours may find a better approach would harness employee desire for social media.

Porterfield sees value there but cautions, “Regrettable posts can be a social liability.” Still she says, “I think more companies will start allowing it because of employee backlash. But there will be more social media policies that will have to be signed off on.”

Steve Andersen, who founded North Carolina’s “The 23 Things Project” to integrate social media and school work, thinks we should teach responsible digital behavior in grade school. “I want people to know we’re teaching how to be responsible and that there’s a world beyond these walls. Hopefully you’ll graduate and continue to be responsible,” Andersen says.

That’s an important lesson to learn when interacting in what Hillinger calls “A one-on-one conversation on a stage in front of a million people.” Because the Project is so timely, Andersen hopes it is a prototype for teaching in 2010 and beyond. “Twitter in education is a huge knowledge base. I just tweeted how I need resources for math and I got 30 responses in 30 seconds.” Andersen also says the program gives kids a richer education. “Why would you not want your kids to interact with the real world, why can’t we extend the walls, show them learning can extend all day long?”

While Twitter and Facebook will continue to grow in 2010 the other sites can build on their success because of the demand for mobility. Ramsey says Nielsen data tracked 18.3 million unique users to Smartphone social networking sites in July alone. “People want to be connected when they’re out living,” she says. “That’s when they’re out, they see a cool product they want to share and they want to share that immediately.” According to Miklusak, “In 2010, we will see mobile technology become a quickly emerging marketing, branding and sales tool.”