Time to Stop Playing Around! (with Social Media…)
This point is summarized in the title from Forrester’s Social Media Playtime is Over. Jeremiah K. Owyang explores how corporate spending continues to rise in the recession. Some of the main points include:
- According to 114 Global Social Media Marketers at companies with over 250 employees, 53% of them plan to increase investment in Social Media, and only 5% plan to decrease investment during the current economic turmoil. (see charts from the report below)
- Further, they indicated that they would continue to increase investment in social media if the economic turmoil continues, even while decreasing other channels. (see charts from the report below)
- Budgets for Social Media remain very small (too small?), with 75% budgeting only $100,000 or less (and 30% spending $3000 or less!). This is largely due to the exploratory and experimental social plans to date as companies seek to answer how social media can help them thrive (and it can!).
- It’s time for companies to stop experimenting and get serious - those who are the most innovative and forward thinking will develop a long term plan. Advertising Age quotes Jeremiah from the report: “…As one of the few marketing budget items increasing during a recession, social media marketing needs to be taken seriously and treated as a corporate asset. To be successful, social media marketing must be managed as long-term programs, not short-term experiments. To succeed, make sure you have dedicated resources in place, including both social media strategists and community managers.” He further ads: “If you continue to fund social applications only as experiments, you’re unlikely to be able to do enough to make an impact, or to have a secure source of funding for the future. One way to put these efforts on a firmer footing is to concentrate on objectives and measure progress… rather than just experimenting to see what happens.”
The time really is now to get serious. As Marketing Pilgram’s Andy Beal pointed out: “If you spend peanuts on social media, you’ll get…peanut butter–not filet mignon–when it comes to seeing results.“ I love this quote, and based on my own research and experience, I couldn’t agree more. If you are going to invest in social media, you need to consider what level of invests will be required for technology, marketing, promotion, customization, training and support – and then to integrate where necessary into your own organizational structure while still accomodating your customers’ social graphs.
On March 9, 2009, Nielsen released “Global Faces and Networked Places: A Nielsen report on Social Networking’s New Global Footprint.” Findings included:
- Time spent in ”Member Communities” (include both social networks and blogs) growing 3x faster than Overall Internet Rate
- 67% of the global online population visit Member Communities
- Communities account for 10% of all time on the Internet
- Biggest increase in visitors to Member Communities in 2008 was among the 35-49 age group
- Mobile access of Member Communities increased 249% in the UK and 156% in the US in 2008
This report is packed with way more information than summarized above so be sure to check it out! I’m sure we’ll be visiting it again in this blog when to look at various global markets.
Note: You can purchase “Social Media Playtime Is Over” from Forrester for $749.