When new technologies appear it’s interesting how people experiment and adapt to them, we’re seeing this right now as businesses grapple with social media tools like Facebook, LinkedIn and Twitter and discover where the benefits lie.
The second edition of the Social Media Benchmarking Study, a joint release by Sydney online consultants Community Engine and the research company Nielson, illustrated how things have changed over the last two years.
One of the clear conclusions from the study is how businesses are developing the ways to determine benefits of their social media activity with near halving of the number of organisations citing lack of measurable return on investment as a reason for not engaging online.
A barrier that is increasing is the perception that businesses don’t have the time or resources required for which is probably business owners and managers realising that maintaining a Facebook Page, Twitter account or blog isn’t easy.
Time is the scarcest asset for any business, which gets more precious with smaller organisation. Even large corporates and government departments struggle with finding the resources necessary to run effective online presences.
One of the tragedies of social media is how it’s been identified as a marketing tool and in this survey over half the respondents stated they are going primarily use the tools as a marketing channel rather than in customer support, recruitment, research or product development.
This is probably why the perception that social media is a time sink comes from. As purely marketing tools social media is time consuming and difficult. A challenge made greater by the fact we’re all still figuring out how to effectively connect with customers in what is a hostile place to more traditional broadcast based marketing methods.
Given social media is being used primarily as a marketing tool by business, it’s no surprise that the survey found larger corporations are the biggest users, as they have the marketing budgets to allocate.
An interesting aspect with big business’ social media investment is how much it’s focused on Facebook. On one level this is understandable as a Facebook “like” is easy to set up and becomes a very simple measurement to follow, although the challenge still lies in converting a low friction click on a “like” button into a useful customer or advocate.
What is surprising with corporate Australia’s adoption of Facebook is the apparent lack of understanding of the platform’s terms and conditions and the business risks involved. Again this is probably part of the collective learning curve.
Possibly because of those risks, public sector use is static. We can expect this given as social media is being pushed as a marketing tool.
This liberation from being obsessed with marketing and sales is probably why the public sector is using social media more creatively as collaborative and research tools where many of these services do an extremely good job.
Many businesses, particularly smaller organisations, believe social media doesn’t fit their objectives. A terrific quote from an SME accountant is, “I run a business, not a chat show”.
That attitude’s fine as social media – like pretty well everything else in the business world – is a tool to be used the best way you see fit. Just because some businesses don’t need a hammer but that doesn’t mean hammers aren’t useful.
Although when that tool is fairly new, as social media is, it’s probably best to have a play with it and see where if can help your business.
The Social Media Benchmarking Study is a useful survey that shows where businesses are using these tools and how effective they are finding them. It’s going to be interesting to see the field evolve as we all get to understand social media as both consumers and business owners.
Paul Wallbank is one of Australia’s leading experts on how industries and societies are changing in this connected, globalised era. When he isn’t explaining technology issues, he helps businesses and community organisations find opportunities in the new economy.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
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