The Business of Social Media

Social media is the fastest growing marketing channel in the world. According to new research, companies will increase their social media marketing budgets by 34 percent through 2014.

From Fortune 100 to small and medium sized companies, marketers have found innovative ways to build out a social media presence in a few short years.

The astonishing growth of companies such as Facebook and Twitter has prompted many businesses to stake their claim on the social media landscape. Many companies use
Facebook to reach out to customers or YouTube to demonstrate new products. Needless to say, these social tools have shown some serious staying-power, especially given that nearly 79 percent of companies own a profile on a major social networking site.

But, is that enough?

If you ask me, no. It is not. Social media is just one dimension of social business.

The concept of “social” spans light-years beyond just social media, and in order to unleash the true benefits of social media, companies must become social to their core.

Too many companies, adopting social media are simply implementing at the tactical level. Changing a strategy and supporting tactics requires fundamental collective changes in thought. Thus, moving a company into a social business model requires a solid commitment to a social media mindset – a new way of thinking – that impacts every marketing decision, interaction and conversation. It is no longer enough to just have a Facebook Fan page, a Twitter handle or a Linkedin group.

This leads us to the million-dollar question of,

“What does social business really mean?”

To be a social business, companies must plan to have a long-term relationship with social media. Excelling at this requires companies to become customer-centric.
They must embrace and engage in conversations with customers where they are talking about the brands.

The most successful social businesses grow their company based on public conversations, feedback and even complaints. Ongoing participation, and listening, in the social-sphere can have a tremendous effects on all aspects of a company.

However your business chooses to go social, it is important to plan carefully, remain focused on your customers, and more importantly, continue the conversation.

Burglars Use Social Media & NBA Owner Fined for Tweet

Burglars Use Social Media to Plan Robberies

Social networks are an information gateway that allows people to share and connect in unprecedented ways. However, a new trend is surfacing, which could have serious implications on your or your property. Social media tools such as Foursquare and Facebook have the ability to, and often encourage their users, to provide updates on what they are doing and where they are. Researchers are finding that this is information thieves are very interested in.

A recent study conducted on ex-robbers found that nearly 80% used Facebook, Twitter and Foursquare to target which properties to rob. Another 73% said they used Google Street View to scope out neighborhoods ahead of time.

Of course, this is only possible if you use social media to let others know when you are and are not home. As location-based technology continues to grow in popularity, be sure to use discretion on your posts and updates.

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NBA Owner Fined for Tweet

As we reported last week, NBA players are using Twitter to garner support for the NBA lockout. However, NBA coaches and owners are not permitted to use social media to discuss the ongoing negotiations.

Monday, Micky Arison, the owner of the Miami Heat, received one of the largest fines ever issued for issuing public statements over a social network. The tweet that caused the fine was only 8-words in length and simply said, “Honestly u r barking at the wrong owner.’’

Even though the tweet was deleted one-hour after it was posted, Arison was still fined $500,000. Arison is now the third owner the NBA has fined. Wizards owner Ted Leonsis got a $100,000 fine last year for comments about possible changes to the league’s salary cap. Michael Jordan, owner of the Bobcats, also got a $100,000 fine for comments he made in August about the lockout.

This highlights one of the greatest dangers of social media, and the internet as a whole. Once information is posted to these channels, the implications are endless. So, take this as a reminder to think before you post.

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Soda Companies Target Youth in Marketing & Google Gives Ads More Transparency

Soda Companies Target Youth in Marketing

The unhealthy affects of sugary drinks are well known, especially on children. A new study from Yale University found that keeping children away from these drinks could be harder than in previous years.

According to the study, U.S. children and teenagers are seeing nearly double the soda advertising than in 2008, with blacks and Hispanics as the major targets.

Black children saw 80 percent more ads than white children.

Social media and online advertisements are one explanation for increased exposure among children, as both the companies and children are very active on those networks.

More than 20 sugary drink brands have YouTube channels and Coca-Cola has more than 30 million Facebook fans.

As a result of this study, and the backlash from many pediatricians, we expect to see more companies taking a stance against childhood obesity, and prohibiting marketing of their products to young children.

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Google Gives Ads More Transparency

Google is making changes to its ad system in an effort to provide consumers with greater transparency and choice.

According to a company blog post, users will be able to click on links labeled “Why these ads?” next to advertisements served in Gmail and Google search results which will explain how and why users were targeted for a particular ad.

Additionally, users can customize their settings using the Ads Preferences Manager and
opt out of personalized ads altogether.

While this is a benefit to the user, this presents a challenge for companies who target their customers with advertisements based on their online behavior.

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