Search Marketing Blog
Does Socializing Benefit Your Bottom Line?
Posted by Jesse Liebman on 04.16.2009
It’s hard to miss all the attention being paid to social media lately. You have surely noticed the increase in referrals from traditional advertising points to Facebook pages, Twitter feeds, or other online networking forums. Businesses catch consumer attention through these traditional channels, however they’re now engaging and converting them through social media. Social media is fun, captivating, and certainly popular, but what is the bottom the line for businesses from all this socializing?
To better understand the value of social media, and in true social media fashion, I explored two in-depth industry lists. The first is a list of the top 50 social brands in March 2009 from Social Radar, which ranks brands based on overall ‘conversation volume’, or how often the brand was mentioned on the Web. The second list is the Interbrand Best Global Brands List in 2008. On this annual list, Interbrand ranks the top global brands based on numerous traditional criterion.
By comparing the relationship between these two lists, I was able to surmise the effect of increased social media efforts to overall brand value. Below are some of my observations of current online social media marketing strategies by well-known companies from these lists, which contributed to answering the question posed by this post.
Apple
Apple garnered the second highest change in brand value (33%) on the Interbrand list. The popularity of the iPhone, iPod, and Mac has challenged long time rival Microsoft’s monopoly within the computing world. Apple’s recent use of social media to convey their new product releases perfectly leveraged and engaged their loyal brand users without the assistance or associated cost of mainstream media channels. These tactics, combined with the popularity of their products, should contribute to the firm’s pursuit to surpass Microsoft’s brand recognition and market leadership.
Ford Motor Company
Ford is the one company that experienced a drop in the 2008 Interbrand Global Brand list. This occurrence was most likely due to the dramatic effect the macro economy has had upon the auto industry. Scott Monty, Ford’s Digital & Multimedia Communications Manager, is leading the social media charge at Ford, by providing news and information to Ford’s audience, in an attempt to reverse this trend. Through social media, Mr. Monty is able to coordinate, manage, and respond to his 18,072 Twitter followers averaging 44 responses per day. We’re looking forward to seeing how much impact these efforts will benefit the world’s fourth largest automobile manufacturer.
Nike
Nike’s brand has become somewhat stagnant on the Interbrand Global Brand list. For the past two years in a row, they have been ranked 29th on this list. However, their push in social media should enable the sporting goods leader to make a charge in 2009. Nike, the pride of the Pacific Northwest, is the only sporting goods manufacture to be listed among the top 50 social brands list. If there is any doubt that Nike is still the champ, take a look at where their top competitors Adidas and Under Armor are on the social media list. You won’t find them on the list.
Amazon.com
Amazon experienced a 19% brand value increase in 2008, and finds itself in the top 20 for social brands in 2009. Amazon CTO and VP, Werner Vogels, and his staff have leveraged widgets, Twitter, and affiliate marketing to remain the Internet’s top shopping hub. The popularity of their ‘Deal Widget‘ has allowed Amazon to stay only one click away from their customers at all times.
Disney
Disney, one of the world’s most recognizable brands, has remained in the 9th position on the Interbrand Global Brand list. Disney has leveraged social media to engage with kids, families, and parents to remain the gold standard of a cross-generational brand. Thomas Smith, Disney’s Social Media Director, has been hard at work implementing its ‘Communication Revolution’, the company’s major new social media initiative inspired by Duncan Wardle’s, VP of Global PR for Disney Parks. Disney’s dedication to social media proves it’s a small world after all.
Nokia
Nokia’s past company acquisitions are starting to pay off and come full circle. The Interbrand number five global brand is also a top 20 social brand. Senior Manager of Social Communications, Charlie Schick, leads the conversation with a team of inspiring and motivated members. The electronics giant incorporates social media as another extension of the conversation that starts with your phone.
Go Social!
Interbrand’s list proves you don’t need social media to have a great brand, evidenced by the fact that both Coke and McDonald’s are within Interbrand’s top 10, yet are outside the Top 50 for social brands on the Social Radar list. However, the brands with the greatest increase in brand value, Google and Apple, are ranked number two and 12 for social brands.
The immediate impact of social media upon your bottom line may not be readily apparent, however innovative social media marketing campaigns certainly contributes to having your brand become apart of conversations within your engaged communities. Companies that have yet to embrace this fact appear to shy away because of the perceived unquantifiable nature of this new form of communication. However, after comparing these two lists, it is obvious companies with this perception are missing significant opportunities. Loyal customers relish the chance to promote their favorite brands. Listen and engage with your audience through social media, and you too can become part of the conversation.
