Monday, October 06, 2008

Social Media Successes? Stats and Case Studies

Dabbling with social media has been successful for some companies and disastrous failures for others. Customers and consumers, though, are calling for interaction with the companies they are purchasing from. I am skeptical of experimenting with 'social media' when the economy is putting at question the size of the marketing dollars and instead 'put your advertising dollars where they make you the most profit'. Of course that would be in search marketing which isn't sexy or trendy and therefore ignored by those that like fancy graphics and feel the need to try something new. Same old, same old.

I certainly feel that blogs, forums and rating/comment interactions with customers/clients/prospects/distributors/affiliates, etc is critical and I hope that some companies can turn this new engagement opportunity into bottom line profits. If it is thought leadership or brand reputation that are top of your list, then social media is critical.

Cone Finds that Americans Expect Companies to Have a Presence in Social Media
When asked about specific types of interactions, Americans who use social media believe:
  • Companies should use social networks to solve my problems (43%)
  • Companies should solicit feedback on their products and services (41%)
  • Companies should develop new ways for consumers to interact with their brand (37%)
  • Companies should market to consumers (25%)

Blogger Campaign Case Study: HP's 31 Days of the Dragon

What HP did was give an HDX Dragon laptop to 31 bloggers, letting each one give away the laptop to its readers, in a week-long contest. Each day, a new blog started a new week-long contest. Success:
  • Sales of the HDX Dragon increasing by 84%
  • Overall 10% increase in PC sales
  • 14% increase in traffic to HP's site

Analyst: Half of 'social media campaigns' will flop

Adam Sarner, an analyst with market research firm Gartner, has projected that over 75 percent of Fortune 1000 companies with Web sites will have undertaken some kind of online social-networking initiative for marketing or customer relations purposes. But, he added in an interview with CNET News, 50 percent of those campaigns will be classified as failures.

"(Businesses) will rush to the community and try to connect, but essentially they won't have a mutual purpose, and they'll fail," Sarner said. By a "mutual purpose," he means a way to serve both the company putting out the campaign and the audience interacting with it: finding that balance is not easy. The quirkiest and most addictive campaigns often provide little value for the company and turn out to be fads, whereas marketing efforts on the Web often don't go over as well with the public.

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posted by Barbara 'webmama' Coll @ 2:02 PM     Permanent Link