Corporate branded content made up 73% of all social media campaigns in 2010 according to EMarketer. What’s more interesting is that companies with the highest level of social media activity generated 18% more revenue than comparable businesses with zero activity. What this essentially means is that now more than ever, having a social media strategy is a requirement for marketing success.
Most companies discount the importance of social media or use it primarily to pitch their products or services. What these businesses aren’t utilizing is the opportunity to really understand their customers. Consumers today are more interested in information discovery and engagement. They find and gather solutions via the Internet, researching online within niche communities, specialized news sources and personal and corporate Web blogs. They enjoy sharing these solutions or stories with their friends and colleagues; and their friends and colleagues continue sharing these stories with their own social network. Branded content is not just an option for a business but now an expectation of the consumer.
A number of businesses believe that their particular industry, product or service does not warrant social media. As Peter Posner, the president of Posner Advertising, discussed in his post last Tuesday, Social Media is not the “silver-bullet.” It is not the end all be all. Effective social media builds a foundation for a company’s organic growth that is based purely on consumer trust and authenticity. It is a tool that lets businesses nurture their relationships with their customers (and potential customers) through content sharing and engagement. It is an online platform for building brand advocacy and consumer-to-consumer communication. It gives businesses a means to gauge their success by measuring click-thrus, transactions, repurchases, visits, impressions and time spent on their Web site. Most importantly, it is a sounding board for business innovation – supplying the attention and direct feedback of its consumers.
Social media is not meant as a substitution for traditional marketing. It is just another communication opportunity that is unachievable through traditional forms of marketing. Both mediums have their pros and cons but when implemented correctly (and jointly), businesses are able to build sustainable brands that stand out above the rest.