Skip to main content

Social Media Marketing is Not for Luddites


Who is the top social median within this market segment, and how can this person influence others? This question will be asked more frequently during 2009, as social media marketing moves further into the mainstream.

User-generated content (UGC) -- also known as consumer-generated media (CGM) -- is part of the online experience of millions of U.S. Internet users. From entertainment to communications to e-commerce, consumers are taking charge of the creation, distribution and consumption of digital content. And, apparently, it's growing like wildfire.

Tipping Point, Groundswell, Whatever...
Up from 83 million in 2008, eMarketer estimates the number of UGC creators will grow to 115 million in 2013. Even more important, rising from 116 million in 2008, in 2013 the number of U.S. Internet users consuming some form of UGC will reach 155 million.

For the prosumer stakeholders of the social media marketplace, UGC creates opportunities that were inconceivable 10 years ago, when self-expression consisted of letters to the editor, town hall meetings and call-in shows.

Today, whenever people get fired up about anything, they take to the Web -- to create, read, listen to or view what other people have to say.

"Unfortunately, if things stay as they are, this frenzy of content generation and attention is not likely to produce commensurate rewards for traditional marketers or site publishers," says Paul Verna, eMarketer senior analyst.

The prevailing wisdom used to be that user-generated content would attract advertising volume commensurate with its audience. But, times have changed, and so have the expectations.

"The pinnacle of giddy optimism was Google's November 2006 purchase of YouTube for a jaw-dropping $1.65 billion," Verna says.

Several factors have dampened expectations:

- The inherent unpredictability of UGC and the risks it represents for legacy marketers.

- The absence of advertising standards for UGC and the difficulty in measuring ad effectiveness.

- The expansion of major UGC sites, led by YouTube, into licensed professional media and the resulting flow of dollars toward this newer type of content, which is considered "safer" by legacy advertisers.

- The global recession, which has led many analysts and research firms, including eMarketer, to reduce online ad spending forecasts, even in areas that directly affect estimates of UGC ad spending, such as online video and social networking.

"As these realities set in, content owners, marketers, site publishers, entrepreneurs and everyday opportunists are realizing that there is no easy road to riches in user-generated content," Verna concludes. "Even finding lucrative niches will require patience, risk-taking, creativity and a long-term commitment."

Swan Song for Mass Media Luddism
Of course, at the same time revenue models elude UGC sites, they are still pulling attention away from traditional big media, such as newspapers, magazines, television and radio -- and putting increased financial pressure on them at a time when they can least afford it.

That said, in my opinion, this is all good news. Yes, social media marketing requires thoughtful participation, meaningful commentary, an ongoing investment and the persistence to stay engaged in online communities of interest for the long-term.

Granted, if you're a traditional lazy marketing or PR practitioner, then this clearly isn't your gig. Sing your final death-hymn, and move on, please.

Popular posts from this blog

GenAI: A New Era in Business Transformation

The advent of artificial intelligence (AI) has ushered in a new frontier of innovation, with Generative AI (GenAI) at the forefront. At the brink of this revolution, it's crucial to understand the current GenAI adoption and its implications for commerce worldwide. A recent poll conducted by Gartner provides valuable insights into this emerging trend and the potential upside opportunities. Generative AI Market Development The poll, which included 1,419 executive leaders, indicates a significant shift in the corporate world's perception and adoption of GenAI. The data reveals that 45 percent of respondents are currently piloting GenAI, while another 10 percent have put it into production. This is a substantial increase from a similar poll conducted in March and April 2023, where only 15 percent were piloting and 4 percent were in production. GenAI is no longer a mere buzzword; it has become a strategic focus for organizations worldwide. As Frances Karamouzis, VP Analyst at Gartne

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -