So, is Social Marketing really all that important?

David Bowser — Sat, 18 Sep 2010 07:48:00 GMT

Some business may still feel like social networking is a fad or over hyped. I decided to do some research to find out what is really happening... Here is what I found:

According to a study that Google originally claimed and then acknowledged eMarketer performed, 45% of people on Facebook choose to 'Like' their favorite businesses. Further, eMarketer shows that adult online social network use grew by about 8 million from 2008 to 2009 bringing it up to 70.6 Million or 43.5% of internet users. For any business that is a pretty good sized marketplace! Let's look at it some other ways...
Dell said that its promotions on Twitter have brought in $6.5 Million in sales from its 1.5 million followers.
When Lenovo acquired the IBM PC division it realized people were talking about its products in social media. So, it took the initiative and built out an intentional social presence. According to Forrester Research, this resulted in a 20% reduction in customer service calls.
A new study by WetPaint looked at companies with the greatest social engagement and those with the least. Their results? 'These "Social Media Mavens" on average grew company revenues by 18 percent over the last 12 months, while the least engaged companies saw revenues sink 6 percent on average over the same time period.'
In their January 30th issue, The Economist concluded a special report saying, 'social-networking technologies are creating considerable benefits for the businesses that embrace them, whatever their size.'
One of the most thought provoking and interesting studies I have come across lately was put together by Deloitte Center for the Edge. They did an extensive study of the fundamental shift that is happening due to the pace of change and the implications for how business value will be generated. In 'The Shift Index' they point out that knowledge itself is no longer as valuable since it is changing so fast. They point to the ability to harness the flows of information as being of greater value.

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So, is Social Marketing really all that important?