Weekend Warrior: The Impact of Social Media

Michael Garrity — Fri, 05 Aug 2011 19:00:00 GMT

Democracy reigns supreme for companies that use social networking to market themselves and their products. A new study by Performics reveals that most users agree that the voicing of opinions on social networking sites can influence the business decisions of a company or brand.

Called S-Net, The Impact of Social Media, the study found that 52 percent of the respondents either strongly or somewhat agreed that voicing opinions on various brands, companies or products on social networking sites such as Facebook, Twitter and Google+ can influence business decisions.

Eighteen specific industries were included in the study, including apparel, appliances, automotive, education, electronics, entertainment, financial services, food, healthcare/pharma, household, magazines/newspapers, alcoholic and non-alcoholic beverages, personal care, restaurants, sports, telecommunications and travel. Performics also discovered that educational institutions, sports and entertainment were the most discussed categories on social networking sites.

Below is a list of best practices for marketers looking to utilize social networks based on the results of the study:

Understand customer desire for brand interaction in the relevant category
The study revealed that 74 percent of people who purchase entertainment products will go back and discuss them on social networks. Hey, everybody’s a critic.

Create and adapt marketing strategies to cater to participation expectations and desires
Over half of the respondents (53 percent) admitted that they will follow travel companies or brands on social networking sites in order to get coupons or discounts. With the price of gas these days, who can blame them?

Allocate time and resources to the most relevant and appropriate social networks
Forty-two percent of those surveyed said that they will discuss automobiles on social networking sites as a way to compare prices.

Regularly monitor and measure social network activity
Thirty-two percent said that they have made a sports-related product purchase because of something they saw posted on a social network. In fact, I’ll even 'fess up to purchasing a Pittsburgh Steelers Snuggie while browsing Facebook.

Adjust strategies and tactics as necessary to optimize engagement
As with travel companies, electronics companies on social networking sites don’t have a lot of fans who like them based on personality alone. Forty-three percent of respondents said that they will follow electronics brands or companies on social networking sites for offers or chances to win points or online currency that they can redeem for products.

While social media can offer unlimited exposure and huge potential for Web marketers, there isn’t yet a perfect solution for analyzing and evaluating consumers' responses to the messages that businesses and brands are sending out. This study is a great start for those who want to get a solid, industry-specific look at how important social media interaction can be for their particular audience.

“Customers expect, and are already participating in a two-way dialogue,” says Daina Middleton, CEO of Performics. “It’s imperative for marketers to listen to customers and adopt strategies that engage them in every channel of their media mix – across all platforms, devices and screens.”

What Shoppers Discuss Most on Social Networks

Linc Wonham — Thu, 09 Sep 2010 15:00:00 GMT

The latest installment of a series of reports on the impact of social media, conducted by ROI Research Inc. and sponsored by Performics, examines how consumers use social networking sites to get advice on what to purchase; how they give advice on companies and products, and whether they post content specific to various industries.

According to the survey, the most highly discussed verticals on social networks were automotive (61 percent), travel (60 percent) and entertainment (57 percent). When it comes to social networkers seeking or sharing recommendations on local retailers, however, home furnishings led all categories, including automotive.

Other highlights of the study include the following:

•    56 percent of respondents are fans of appliance brands or retailers on Facebook
•    49 percent of respondents most often use social networking sites to seek advice on electronics purchases
•    49 percent of respondents discuss apparel on social networking sites to compare prices
•    49 percent of respondents follow automotive brands or retailers on Twitter
•    38 percent of respondents most often use social networking sites to give advice about financial services and home furnishings companies or products
•    26 percent are likely to make an automotive purchase as a result of a recommendation someone posted on a social networking site (higher than any other vertical)
•    23 percent of respondents follow at least one travel company on either Facebook or Twitter

The results were compiled over 2009 and 2010, and seem to confirm social media’s heavy impact on the retail landscape. While marketers remained unconvinced until relatively recently, the fact that businesses are increasing their advertising spends on Facebook by up to 20 times more than last year’s amounts is a clear indication that the doubt has subsided.

'Net Features : ROI Research

Weekend Warrior: The Impact of Social Media

What Shoppers Discuss Most on Social Networks