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Introduction to Social Media Marketing Series

Marketers everywhere are eagerly jumping onto the social media bandwagon. According to Alterian’s recent survey of 1500 marketing professionals around the world, 75% of marketers plan to increase their budgets in social media this year. In the U.S., social media spending is expected to rise 35.4%, to $1.6 billion, in 2011, according to the marketing analyst firm, Winterberry Group.

But these communications channels are still new, and marketers are unsure about how to get the most value from them. In the same Alterian study, only 30% of respondents say they are tracking and reporting on their brand’s experience with social media. Marketers are experimenting widely, but there is still quite a bit of uncertainty about the results.

This new series will explore the latest social media marketing activities in the U.S. While “social media” can be defined in a variety of ways, for these articles, we will consider any medium where individuals actively contribute to the discussion, including blogs, social networks, consumer reviews and comments, and any other place, whether on the Internet or on mobile devices. Let the games begin!

How Marketers Are Using Social Media in 2011

We know that marketers are experimenting with social media, but what is really going on, in detail? Some new research from the University of Massachusetts Dartmouth Center for Marketing Research reveals the most used—and most successful—social media tools for marketers among the Inc. 500, which is the fastest-growing companies listed in an annual ranking from Inc. Magazine. Facebook, Twitter and blogging lead the list. We shouldn’t be surprised that fast-growing companies are ahead of the curve in trying out these new ways to connect with customers and prospects.

Foursquare is at the bottom of the Inc. 500 usage list, but given that the tool was only introduced in 2009, it is clearly a rising star. Foursquare lets its 6 million (so far) users announce their locations via their mobile devices, and invite their friends to join them, while at the same time earning points for promoting the bars and cafes where they hang out.

Interestingly, when it comes to the question of what social media tools the Inc. 500 marketers find most effective, however, the list shifts considerably. Message boards lead, possibly because they have been around many years longer than the newer tools like Facebook and Twitter, giving marketers a chance to get a feel for their results. That video would be deemed so successful is not surprising, since video has been shown again and again to lift response and conversions in advertisements online. Myspace has been in decline for several years, and its owner, Rupert Murdoch’s News Corp., recently indicated a desire to unload the property.

The perceived value of social media for marketing among the Inc. 500 is growing dramatically, with 56% of responders in 2010 calling it “very important,” compared to 43% in 2009.

The outlook for social media marketing is strong, as marketers and agencies gain experience and the media themselves continue to grow. Very likely, among the trends for social media marketing in 2011 are:

• Continued growth of social media usage by consumers. eMarketer says that 65% of U.S. Internet users will use some form of social media in 2011, compared to 35% at the end of 2008.
• Steady spread of social media marketing. eMarketer predicts that 80% of all companies in the U.S. will be using social media by the end of 2011, up from 73% in 2009, and growing to 88% in 2012. But there are pockets of non-adoption.

The industries least likely to use social media are manufacturing, government and utilities.

• Growth in social media marketing spending. Ad spending on all social networks in the U.S. is predicted to comprise 10.8% of all advertising spend, according to eMarketer, with 83% of companies increasing their budgets from last year.
• Hiring marketing staff dedicated to social media. In its 2011 Digital Marketing Outlook report, The Society of Digital Agencies says that 50% of agencies and 31% of clients will be looking for social media marketing skills in their hiring plans for the year. They are also looking for skills in social community site management, and social media monitoring.
• Emergence of additional social media channels. New networks and methods for connecting with others seem to arrive on the scene daily, most of them serving niches, like SplashVision for people who work and play on the water. One new general-interest site is Quora, a question-and-answer tool that is now beginning to gain some traction. But it’s not just entrepreneurs launching new media. Businesses can easily create their own social networking sites using development tools like SocialGo.

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