Brands Still Sitting On The Social Media Fence

23/03/2010 10:11
With unique users of 73.5 million on Twitter and 400 million on Nike Air Jordan ShoesFacebook, it doesn't seem feasible that in 2010, organizations would not utilizing social media as their primary branding tool . Yet a good number of firms and regions around the world are still sitting on the proverbial fence. Why? For those that have a hard time believing thatair jordan social media improves the positioning of a brand, you might be interested to learn that consumers engaged in social networks are more likely to purchase a product or service than those who have not been exposed. New research attests to the fact that over 60% of Facebook fans and Twitter followers are more likely to become consumers of a brand once engaged with these networks. In a study recently conducted by Chadwick Martin Bailey,air jordan shoes a market research and consulting firm, over 1500 consumers were surveyed to determine the likelihood of purchasing and recommending brands after joining these two social networks. The results determined that 60% of Facebook fans and 79% of Twitter followers would recommend, while 51% of Facebook fans and 67% of Twitter followers will actually buy the product or service. If this be the case and after the world has witnessed some of Nike Air Max Shoesthe effects of social media over the course of the last 6 years, why do some brands continue to resist utilizing the power of Web 2.0? Biotech &Air Max shoes Pharmaceuticals Last fall, Citibank Small Business determined that three-quarter Air Maxof small to mid-size businesses say they have not found sites such as Facebook, Twitter and LinkedIn helpful for generating business leads or expanding business with fewer than 100 employees. Also, 86 percent said they have not used social networking sites for information or business advice. Ten percent said they have sought business advice and information on expert blogs. "We were very surprised we did not see more use of some of the social media outlets, even if just for advice," she Maria Veltre, executive vice president of Citi's Small Business segment. "The low number of small businesses using such sites forNike Shox Shoes business purposes was unexpected, particularly as social media use has grown overall," said Veltre. So while the majority of brands have saddled their horses up to air shoxthe social media watering hole, I don't think it will be long before some of the hold-outs mentioned here will join ranks. There is already activity from some Pharma firms like Astra Zeneca and Johnson & Johnson (see "Top Ten Drug Companies in Social Media"), and a good number of small business start-ups have embraced social media as their primary marketing and promotional tool (see "Sweet Social Networking Personalizes Chocolate Forair shox shoes Twitter & Facebook Users"). Asian firms and censorship-controlled countries like China will take longer as cultural differences present major hurdles that will take a lot more time and energy to work through. Other companies still resistant struggle in justifying Nike Air Force Shoesthrowing resources at social media if it doesn’t necessarily result in a tangible ROI. However, if one was to view social media as the 21st Century version of public relations, I don't think ROI is the correct measurement to analyze effectiveness. While social media is not the most immediate cause and effect between product and sale, it is the necessary brand reinforcement that builds trust and loyalty. Brands in this arena need to focus more on ROE or return on engagement than a return on investment dollars. Advanced economies face “acute” challenges in tackling high public debt, and unwinding existing stimulus measures will not come Nike Basketball Shoesclose to bringing deficits back to prudent levels, said John Lipsky, first deputy managing director of the International Monetary Fund, in a speech yesterday in Beijing. The pound weakened for a third day against the dollar. The CBI warned Briitain’s economic recovery may be in for a “bumpy ride” this year as consumers save more and spend less. “The economic outlook is improving, but the lack of a clearair force driver for growth will make for a bumpy ride in the months ahead,” CBI Director General Richard Lambert said. The pound was also driven lower amid speculation Dubai World will prolong the repayment of its loans, hurting earnings atair force shoes U.K. banks that serviced the state-owned Emirati company. The Times newspaper reported that Dubai World will ask for eight more years to repay its creditors. Dubai World, which is restructuring $22 billion of debt, will promise to repay all debts if it’s granted the extension, the London-based newspaper reported, without saying where it got the information. “This article could be one of the possibilities for why the pound is weak,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “It would be negative for risk sentiment and for U.K. banks that have loan exposure to that company.”