Wednesday, December 02, 2009

How Corporations Are Benefiting from the Social Media

A fascinating survey by McKinsey(via eMarketer) asked companies which Web 2.0 technologies were providing the biggest benefits, both internally and externally. While blogs were cited as the most useful tools — bringing measurable benefits to 51% of responding companies worldwide, followed by video-sharing and social networking, at 48% each — wikis, podcasts, ratings and tags were also seen as beneficial to some.

(Another recent study found that, among Fortune 100 companies, the #1 choice among social media channels is Twitter.)
Among the benefits flagged by the McKinsey research: more than half of respondents (52%) said that social media tools increased marketing effectiveness; 43% reported higher customer satisfaction; and 38% cited reduced marketing costs.

The industries reporting the most benefit from Web 2.0 were technology companies and business/legal/professional services firms. While the report doesn’t say why, it seems evident to me that it’s because companies in these industries are more likely to be engaged in thought-leadership marketing.

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Tuesday, July 21, 2009

Social Media vs. eMail vs. PR

eMarketer recently published a very interesting article citing a Nielsen Online study that shows social networks and blogs edging out email in popularity among people in the U.S. and other leading digital countries worldwide.

At the same time, according to the article, an IDC study found email to be more effective than social media advertising with respect to customer acquisition. Forty-three percent of social network users NEVER click on ads in the medium, and of those that do click on them, only 11% purchase anything. Eighty percent of nonusers of social media click on ads and 23% of them purchase.

My view: public relations blows this out of the water. Relevant information that gets circulated via PR to the right places seems to spur action according to our early business-to-business campaigns. For one of our clients, for example, our campaign to bloggers got upwards of 30% of those targeted to visit our blogger resource site for more information.

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