Influence of Social Media Marketing

Isn’t it enormous how many people use social media?




When I saw this current statistic from 2013 I was really impressed by the huge amount of people hanging around at social media platforms. Concerning the rising trend of those platforms in all various facets my interest focuses more on the marketing and advertising part that is generated there.


Marketing Possibilities for Businesses

Looking at a business’ marketing concept: In general you want to address a lot of people, want to connect them and want to put the record of your business straight.

That’s why Stephanie Chandler, an economic book writer is convinced of social media marketing. She demonstrates that the possibility to sell your business or your product in the best customer addressing way and use the repeat exposure tool to influence the users mind subconsciously with your advert is provided by the platforms. Banners decorating social websites assure the constant stream of commercials and logos.

Supportingly, David Dubois, assistant professor of marketing INSEAD, invokes the example of American Express which includes the introduction of a conversational page at Facebook(Amex on Facebook). The successful leverage hereby is that Amex provides continuously relevant information for potential customers or investors to stimulate interaction between the audience. Including facts and trends as well as professional contributions on their Facebook page, Amex is able to address the audience directly and because of the conversations Amex is also able to align their business to customer needs.

As well as American Express is able to position itself in the center of information exchange, HP also experienced a boom becoming the first business which has 1 million followers on LinkedIn which are in return connected to 43 million other members.

To turn the tables, Paul Dunay, global VP of marketing for Maxymiser, states that the usage of social media may also end up in a total mess! Quantas Airlines for instance ventured a faux-pas by raffling a first class pajama to promote their possibility of luxury flying and raise Twitter followers. The thing was, that this came after months of negative publicity stemming from disputes which then lead to Twitter comments like:”Getting from A to B without the plane being grounded or an engine catching fire. #qantasluxury”, which were spread over the internet immediately and finally, resulted in the grounding of the entire Quantas fleet.


Trends of Social Media Marketing coming up 2013

To drift away from good and bad examples of social media marketing I was wondering what the year 2013 will bring us in relation to marketing trends.

What caught my attention was the increasing trend towards the mobile usage of social media. In Germany, the acquisition of smart phones in relation to other mobile phones raised from 67% to 77% in the end of 2012. Last December, about 16 million Germans had access to social networks or blogs via their smart phone.

To relate this trend to marketing via social media, Facebook already faces a downturn in revenues because of the declining PC usage.

Advertisers are not willing to pay as much for mobile ads because they simply are not as effective as ads on a desktop. And the mobile ads that advertisers are buying are a lot cheaper than ads on a desktop, pricing at 56 cents on the dollar”, Colin Gillis, analyst for BCG claims.

The development of viable advertisement from desktops to mobile platforms is not as easy as thought. Recent studies show that 41% of adverts are shared via display, whereas only 8% attention is given to mobile adverts.The question arises how to squeeze ads on tiny mobile screens to still afford marketing options for businesses.

Ryan Holmes, CEO of HootSuite announces that new social ad models characterized by innovative offerings like Promoted Tweets and sponsored Stories will replace the traditional banners and pop-up ads. The main concept is convergence. The target is to combine ads and content.


How important are the social media ads? How do they influence users?

Social networks became more powerful than one has probably thought of: navigating purchase decisions, rising confidence in brands and communicating with customers affect the everyday usage of social networks. According to a recent report from YouGov, in the UK 23% of users researched a product after seeing it on a social media site, which represents a 6% increase of the year before. In addition to that research 13% of the people decided to actually buy something, which increased 7% from the year before.

To come back to the percentage of users who researched on a product the study also reveals that only 5% actually claimed that they have clicked on an advert in the last year. For me it seems to be an indicator for subconscious marketing. Another aspect which is interesting to me is that according to the study less than 1 in 10 feel that targeted advertising is relevant to them.

To conclude, users are obviously open to influence by adverts in social networks. Although at the moment it seems to be more like a subconscious absorption, I guess that when target groups would be addressed better advertisement would me more relevant for them and had more potential to grow.



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