Many social media marketers are working with theultimate goal of integrating social into their company’s overall marketing efforts and gaining the experience to conduct the best social campaigns. But according to research from SmartBrief conducted by Summus, they could have a long wait.
The June 2010 survey found that, while a few companies at each stage of experience with social media marketing did have a fully integrated strategy, it wasn’t until companies had been working in social media for at least two years that even a quarter of respondents had fully integrated their programs into their business model. And integration was more common than more basic coordination only among companies that had used social media for at least three years.
Most companies using social media, however, have nowhere near that level of experience, according to the survey. Just 5.4% have been doing social media marketing for more than three years, and another 7.5% have been doing it for two to three years. Nearly half of companies (47.6%) have less than a year of experience, meaning it’s much more common for social media marketers not to be integrated or coordinated as part of the larger marketing picture.
In its report, SmartBrief noted that its sample was self-selected and likely to be more familiar than average with social media, more interested and engaged with the channel, and also more proficient. This suggests that among the larger population of companies, integration efforts could be even further from complete.
COMMENTARY: One of the biggest unknowns is whether social networks like Facebook, Twitter and Foursquare are effective in creating true engagement between a brand and its fans or even generate incremental revenue streams.
I sometimes feel that individuals do not become Facebook members to engage with a brand, but join in order to connect with like-minded individuals with similar interests, and that the resulting social interactions between these individuals lead them into making buying decisions based on word-of-mouth rather than what the brand says in an advertisement.
Researchers at MIT recently developed a study that suggests that social factors can get you to try something through a promotional offer such as a discount coupon or award, but not necessarily buy that product again. If MIT's findings are true, then it casts a giant shadow of doubt over the whole idea of social media as an effective channel for generating incremental revenues. After all, isn't the key reason for advertising to generate sustainable revenue streams and brand loyalists, not just create brand awareness.
Groupon's highly successful social group buying site suggests that MIT's study (see above) could be accurate concerning the effectiveness of promotional offers, to create one-time revenues, but this may not necessarily result in incremental revenues, a fact that has led many social media experts to suggest that Groupon's business model may not be sustainable and not cost-effective for its merchants.
The above studies make you wonder if social media is doomed to be nothing more than a platform for generating sales through promotional offers, and the concept of developing deeper engagement between a brand and its fans is total B.S. Facebook apparently realized this very fact by adding Facebook Deals to its services. They are leveraging their 500 million plus membership.
Website training and software company Intellimon, in partnership with the University of Bradford, developed a report revealing that 67 percent of respondents to their recent survey use the social media platform Facebook to promote their businesses, but only 29 percent find the site effective for driving traffic to their website.
It's also telling that a recent report proves what common sense tells us about social networks: The motivation to "like" a brand on Facebook is most often driven by monetary gain, with 40 percent saying they become fans to receive discounts and promotions. Yet only a small percentage of consumers (17 percent) say they're more likely to buy a brand after becoming a "fan" on Facebook, according to the same survey.
In another interesting revelation, the PEW Internet and American Life Project reported that only 4% of Americans are using location-based check-in services like Foursquare and Facebook Places. In another of my blog posts I also provided 11 reasons why location-based check-in services are not being used.
The above studies and findings can definitely raise some doubts among brand marketer's, and the numbers show that although 75% of businesses have a social media presence, they are still very skeptical and spending very little on social media (see below) when compared to traditional media channels.
Twitter just started monetizing their social network blogging site with Promoted Tweets, and it is really having problems convincing advertisers that their social network is an effective advertising platform.
The fact remains that Facebook and Twitter, the two largest social networks, only began monetizing their sites in 2009 (Facebook) and 2010 (Twitter). Both are still developing and refining their revenue models and gathering and analyzing data about consumer behaviors. The current state of social media has created more doubts among brand marketers resulting in skepticism and resistance.
I have often stated that the advertising supported business model of social networks is busted and that social networks like Facebook and Twitter will never become profitable with advertising alone. This has generated a flurry of social services including social games, mobile apps and location-based check-in services.
Courtesy of an article dated November 30, 2010 appearing in eMarketer Digital Intelligence
thanks for sharing this emarketers
Posted by: freelance writing | 05/05/2011 at 08:42 AM