Response #8 – Post

mmm…Delicious.  I’ve always loved the name of that website…and now love it for more than its name since I actually began using it and realizing all of its capabilities!  This week, I will be commenting on one of the class articles posted, “Marketers Moving to Social Media.”

This article is very indicative of the times we’re in – not only technologically, but also economically.  If the new generational obsession with social media wasn’t enough, companies across the globe are scrutinizing every facet of their marketing budgets trying to cut any discretionary expenses due to plummeting revenue.  The combination of economy/consumer shift seems to be the catalyst for most companies’ trend toward social media. 

According to the Aberdeen Group, 21% of Best-in-Class companies plan on increasing their social media spending 25% or more in 2009, and at the low end – 26% of companies plan on increasing their social media spending by 1- 10%.  According to the article, 2008 social media spending was $2B (up 46% from prior year), and 2009 is estimated to be $2.35B, capping out at $3.5B in 2013- a whopping 43% increase over a 5-year period. 

However, the marketing ambiguity still exists.  One of the largest obstacles in marketing is measuring a campaign’s effectiveness, or Return on Investment (ROI).  The social media funnel does not erase that obstacle, but it does offer much more customer information to the company – i.e. names/pages of Twitter or Facebook followers, for example.  In the instance of Twitter, a company can use its search function to find all of the “tweets” on their firm, and enable them to see what’s being said about the company – an advantage mainstream marketing does not offer.  In my opinion with social media, it’s much easier for a company to measure its brand health than with typical marketing, by engaging customers in dialogue. 

If you search the class Delicious page, you will see that the term “marketing” has 20 tags – not far from social networking’s 25.  There is a huge correlation between the two, and also social media.  Social Media has become integrated in a large portion of the population’s life (as the above video suggests), and companies are beginning to realize this – or, maybe they’re still trying to trim those marketing budgets….


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