Social Networking
Social Networking has been one of the most talked about phenomenon of 2007 Social Networking sites are those where people gather, connect and share. They include sites like MySpace, Facebook, Linked In, Digg, SecondLife, Del.ici.ous and Twitter. Currently it is estimated that 40% of adults and nearly all teens with Internet access visit social networking sites regularly.
Social Media Marketing
“advertisers are expected to spend $900 million on social networking sites this year”
Social media marketing now produces more income than any other type of Internet site and marketers are scrambling to be part of this phenomenon.
One of the most effective methods of social media marketing is based on the premise that consumers are more likely to purchase a product which is recommended to them by another person, and most effectively one that they know and trust. Companies need to engage their consumers in conversations which garner this trust. Once people know and trust you they will spread your message for free.
Social networking also allows targeted marketing based on users interests. By using information contained in users profiles, photos, interactions etc. the savvy marketer can ensure they are reaching a market which is appropriate for their product. Data is quickly surpassing content as ‘king’ in the online world. Facebook now allows applications to be built which generate no income for Facebook which will greatly increase the amount of time users spend on Facebook as well as the amount of information gathered. The sheer number of users, as well as the collective data from their profiles is marketing gold for those looking to appeal to a mass market.
A trend of some interest is that smaller social networking sites are gaining an increasing percentage of the marketing money. With so many users on the larger sites it can be difficult to reach your target market effectively. Niche social networking sites just may be the big thing for 2008.
Social network marketing also has potential upside for the companies in that they are able to get feedback from the consumers and therefore make future products that consumers actually want. This can be substantially more effective and cost effective than traditional market research.
Backlash
With the rush to monetize user generated information it was hardly a surprise when someone finally went too far. The backlash against Beacon, a system which published what Facebook’s users were buying on other sites on their news feeds, was highly publicized and caused such an uproar that Facebook was forced to change their policy. Less publicized was the backlash against MySpace’s HyperTargeting system which searches through user profiles and photos to target marketing. The lines of what is acceptable in regards to social media marketing are currently being drawn and what happens now, in these early days, will most likely shape the future of this new marketing medium.
Future
The future of social media marketing looks bright with estimated revenues pegged to be at $4 Billion by the end of 2011.
