News of Note
Executives must realize and learn the power of social media
Business Wire - 2/28/08
BOSTON — Senior marketing executives in several countries agree that the use of social media for corporate, brand and product marketing is not a passing fad, according to research sponsored by TNS media intelligence/Cymfony. In fact, nearly 50% believe it is a vital component of corporate communications that should be monitored at the executive level and allocated significant resources.
The responses of the marketing executives surveyed show that companies are taking social media seriously. Beyond the need for C-level support, another 30% see social media as an unconventional new opportunity that businesses must grasp with a sense of urgency. In addition, 95% believe social media will grow in significance over the next five years. When asked about the uses of social media, respondents endorsed it as a strategic tool to gain consumer insights (37%), build brand awareness (21%) and increase customer loyalty (18%).
The survey reveals that the early adopters (“Revolutionaries”) are more advanced in their understanding and execution of social media marketing initiatives than more cautious marketers (“Wait-and-Sees”). First, nearly five times as many Revolutionaries are already implementing social media in their organizations and three times as many Wait-and-See companies are only at the learning stage. In addition, Revolutionaries are far more optimistic about the future of social media with 81% saying it will grow in significance over the next five years. Only 33% of the Wait-and-Sees agreed with this outlook.
When asked about how they would use social media to influence their marketing initiatives, Wait-and-See companies put more emphasis on using social media for new types of marketing campaigns such as viral marketing and videos, while Revolutionaries focus more on listening to consumer and bloggers’ points-of-view. One area where they were in accordance was that both Revolutionaries (95%) and Wait-and-Sees (60%) are eager to connect with other colleagues to study consumer feedback and learn from it.
“The survey results show that most marketers think that social media is another media channel that companies can use to push their messages through,” said Jim Nail, chief strategy and marketing officer of TNS media intelligence/Cymfony. “The Revolutionaries have a more sophisticated approach to creating stronger relationships with consumers and as a result are gaining a competitive advantage.”
Respondents endorse the role blogs and other social media channels play in an integrated product launch campaign. The potentially most effective use of social media, chosen by more than 50%, is creating a user community of bloggers to provide user experience feedback. Another 47% believe using social media vehicles, such as YouTube, to generate a viral campaign would also be very effective in a product launch. Specifically in the U.S., more respondents support the idea of utilizing social media to boost the effectiveness of their social media efforts than their global counterparts.
“This study reveals a tremendous shift in the public relations and marketing professions,” said Jen McClure, executive director, Society for New Communications Research. “Communications professionals have a real opportunity to increase their strategic importance. At the same time, companies and other organizations need to take a hard look at their cultures and ready themselves for this new approach to communications.”
