Social Media-an Advertiser’s Paradise?

Jun 09, 2009•Blog Posts• Online & Digital Media• Social Media• by author

Stacey A.

What started the frenzy was Friendster, an online application geared toward helping acquaintances stay in touch and meeting new people. The site launched a basic platform that has been enhanced by the online juggernauts of MySpace and Facebook.

And seven years since Friendster, a can of worms has been opened. A recent May 7, 2009 webinar conducted by Geoff Ramsey from e-Marketer tells us exactly how big this can of worms is: 44 percent of the total US Internet population is currently engaged in the social media world, while 23-73 percent of marketers are scratching their heads and trying different social media advertising techniques to generate revenue for their firms.

While marketers drool at the possibilities of capturing the attention of so many different prospects in one marketing campaign, there’s another important reason why they find social media so appealing. Social media can serve as an honest marketing approach that uses loyal consumers’ word-of-mouth to rapidly communicate a firm’s bottom-line to new prospects. A Facebook application, fan page, Twitter page or blog can circulate its way around online in seconds, and could prove to be far more effective than a sales sheet.

With this in mind, giving loyal consumers the control to communicate a firm’s product or service can work wonders. After all, friends and family have far more influence on a consumer than a marketing-spewing salesperson does.

To this point, Ramsey’s discussed the results of a Nielson survey distributed in 2008, in which the respondents were asked to describe the field of advertising in one word. That “one word” was “False.” Recruiting customer friends and family to promote a brand with social media can ease consumer wariness and generate revenue.

But of course, if it were that easy, then businesses all-around would be booming. Ramsey also discussed the love-hate relationship between users and social media, in which he proclaimed that 69% of US senior media execs think social media is “overhyped,” but stressed how ANA survey marketers ranked social networking as the #1 tactic for growth opportunity. Another interesting statistic: Ramsey expects the amount of US Twitter users to increase almost 400% from 2008-2009.

It seems simple enough; here are millions of consumer profiles telling the world exactly what they like and want, their interests, where they shop and what they eat. So why are some advertisers having such a difficult time tapping into this market?

Could it be because social networking sites are for social networking, not shaking hands and exchanging business cards? Advertisers will attest that cracking the “How to Advertise Using Social Media” case is challenging, because it’s hard to advertise in a social network without alienating other social media users. In order for a brand or company to succeed in advertising effectively with social media, marketers need to embrace the interpersonal aspect of things. People on these sites – at least initially – are there to connect with other people. Advertising needs to be about more than mere banner ads, and should forge a personal connection with the desired target audience.

Here’s an example: Jason Falls, a dedicated Twitterer and H&R block customer, blogged about a specific experience online where the tax preparation firm reached out to him on Twitter. This wasn’t the first time he was aware of a company advertising on social media, but it was the first time they became human and social about it. Falls wrote, “What H&R Block has done is create an obvious fake persona for a social media campaign, but done so transparently. They’re providing valuable content, not just in entertaining videos and silly blog posts, but in tax tips, count down clocks and valuable link resources, even if most of them are directly to H&R Block.”

So the end goal is to be personable. But advertisers must be aware of some of the challenges involved in advertising via social media sites:

• The Medium Is Saturated. Anyone can make a page on a social networking site. There are very little entry barriers. As a result, there is a lot of competition and many confused users unsure of which brand or service they should choose.
• Excessive Noise. Hundreds of new videos are uploaded to Youtube.com every minute. Even if you’ve created the greatest viral video campaign in the world, it may be overshadowed within minutes by a video of a dog running into a wall.
• Brandjacking. There are literally hundreds of social media sites, and no real branding standards. You could create something great and easily have it ripped off and replicated elsewhere without your knowledge or consent.

Don’t get too overwhelmed though, because here are some tips on how to market successfully with social networks:

• Join in on the Conversation. Instead of plugging your product aimlessly, pick the right, relevant communities for your brand. Add some entertaining and useful value to your conversations. This will establish some trust with your consumers, while drawing attention to your product or service.
• Keep Consumers Happy. Give your consumers some fun widgets and applications that they can link to on their own pages. This will get them to share your brand with others.
• Unleash Your Consumers’ Wisdom. TurboTax created a customer service wiki that allows customers to answer routine questions for users that have inquiries regarding their taxes, or with site navigation. According to Ramsey’s webinar, the CEO of TurboTax proclaimed that 40 percent of end-user questions are answered by other customers at a higher level of accuracy than their actual customer service center. Recruiting TurboTax enthusiasts costs the tax preparation firm virtually no money, and the firm’s online community continually grows.
• Establish Trust. This means that you should really invest in great customer service and listen to your audience carefully. Have your marketing messages be real and conversational, instead of making your audience dizzy with “marketing speak.”

During these times, consumers are more susceptible toward acquiring a product or service in which their vendors are “real” and can provide them information. Though difficult, you can market your brand with social media- the key is to allow your brand’s loyal consumer-base to do the leg work for you.