The Value of Social Marketing

This morning, I read an article on iMedia by John Baskin titled: "5 Reasons Social Media is a Waste of Marketing Dollars." http://www.imediaconnection.com/content/29053.asp Currently, I work in the Social Media and Relationship Marketing division at Horizon Media. Our group has grown from 5 people 2 years ago to 14, and we are still growing. So the point about marketing within this space being a waste of marketing dollars simply isn't accurate.

I have participated in these debates, in which the argument on the value of Social Media, and its long-term ability to increase sales, or drive tune-in, etc, is called into question. It's important to view the value of social media through a non-traditional lens. You cannot apply the value, spend and rationale of a typical media buy to activations that take place in the social space. Social Media is best at building awareness, and driving conversations around a brand. It's also an excellent way to find your most powerful targeted audience, and apply that intelligence to all aspects of your clients future marketing initiatives.

Moreover, you can change approach, direction and tactics in real-time within the social space, and gage and interpret conversations to strengthen your strategy. Having said all that... John is right on several points. Pepsi did see a dip in sales, even after their refresh project, which was wildly publicized and enormously "successful" through the lens of social media. But, it didn't impact sales the way it was expected to. My point is, it shouldn't have been expected to.

Many activations within the social space are going to be test and learn opportunities for brands. Considering the spend made versus the ROI, it's foolish to debate the value, or assume the money was not intelligently spent. 74% of consumers trust a friend recommendation over a traditional ad, and it will only increase. The voice of the people cannot be overlooked.