MySpace, Facebook, LinkedIn… the list of social networks seems as deep as the long tail of digital music. Social networks are everywhere and have been the darling of digital marketing over the last couple years. But why do digital marketers want their piece of the social pie? A few simple words… achievement of scale.
Why do national and international marketers still rely on television for the vast majority of their marketing dollars when everyone knows that TV audiences are shrinking, significant numbers of people are viewing additional media while watching TV so they are distracted and many people completely skip commercials using their DVRs? Marketers are looking for scale… the most bang for the marketing buck. The theory is that the more marketers bombard vast numbers of people with a compelling message, a good percentage of those people have to be paying attention. Then, a percentage of those people paying attention will take action and investigate the product or service. Then, an even smaller number will make the decision to purchase. By starting with such a large market (up to tens of millions of people depending on where the TV spot is running), marketers can quickly move the sales needle even if the medium is less effective now than it was even a year ago. So, how does this relate to social networks? Social networks are getting eyeballs in vast numbers, which is why popular networks like MySpace and Facebook have tremendously high book values. Marketers want numbers, and in theory, social networks can deliver those numbers.
From business-to-business networks like ITtoolbox (and its 1.3 million members) to professional networks like LinkedIn to networks of mommy bloggers, social networks are everywhere and consumers, professionals and businesses are using them. Not only are marketers taking advantage by advertising on networks like MySpace and creating applications for Facebook, such as Visa creating the Visa Business network for small businesses on Facebook, but they are also creating their own networks. For example, brands such as Luvs diapers are engaging consumers by allowing them (mothers of young children in the case of Luvs) to share their views on controversial parenting topics. The theory being that the more engaged your consumers are in conversation (with your brand as the backdrop), the more positive their view of your brand.
Even mobile consumers are getting involved in social networking. Based on multiple sources and its own analysis, eMarketer predicts that more than 800 million people will use their mobile phones to access social networks by 2012.
So, consumers are using social networks. So, what? Well, marketers have realized that if they can tap into networks, maybe they can harness the power of word-of-mouth in the digital space. Advertising programs on the likes of MySpace and Facebook haven’t been overly successful cash generators for the networks, however marketers are trying to find any way they can to gain access to the large amount of eyeballs on these sites. The successful marketers have figured out a way to use the networks themselves rather than relying on traditional digital mediums such as banner ads. One good example of a marketer harnessing a popular network was
Social networks are used by millions and millions of people, offering the potential digital scale that marketers are craving. Banner ads can offer scale as well, but tapping (or even creating) a vast social network can lead to pass-along the likes of word-of-mouth, as well as high brand affinity and increased purchase intent. Many of you reading this article are a member of a social network. Whether it’s LinkedIn, Facebook or some other professional, business-to-business or purely social network, the number of members continues to grow at a furious pace. Are you tapping into social networks to grow your brand? Most likely the leader in your market is.
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