Social media may not be more effective than traditional marketing techniques
By: Mark HaslanMarch 17th, 2010
Stories frequently appear about how many Americans – both individuals and businesses – are using social media. But the effect of social media promotion on commerce has remained unclear. Techniques like postcard mailings, brochures and business cards are known to capture consumers attention – can tweets and fan pages compete?
The Wall Street Journal recently suggested that the answer to this question might be "no." When it comes to social media, "the hype right now exceeds the reality," the paper quoted Pace University’s Lubin School of Business professor of marketing Larry Chiagouris as saying.
The Journal notes that social media adoption by small businesses doubled this year, with nearly a quarter of businesses now implementing social media-driven strategies. However, another survey cited by the paper shows that more than half did no better than break even on the investment, while nearly 20 percent lost money after initiating social media programs. Half of respondents claimed that social media use was more difficult than they expected.
Indeed, many businesses find themselves outsourcing social media practices, which can cost hundreds of dollars a month. For those who do it in-house, it can be a taxing process. One entrepreneur quoted in the article claimed his staff spends up to 90 minutes a day managing Twitter and Facebook accounts. The result? "My business has been visited millions of times, but I haven’t made millions of sales," the business owner told the Journal.
The ease and accessibility offered by the medium may open up new risks in itself. "It could harm you if you end up inadvertently saying something stupid, offensive or even grammatically incorrect," Chiagouris told the paper. Sometimes, interactions with unsatisfied clients can turn ugly, particularly on review sites like Yelp.
Most studies, including reports from eMarketer and Merkle, show that integrated marketing strategies are far more effective than those that concentrate on only one medium. Not only does print material affect online consumer behavior, it provides a significantly higher return on investment than electronic marketing in isolation. With Direct Marketing Association statistics showing that nearly 80 percent of households read or skim marketing materials sent to their address, it seems clear that an effective marketing program will incorporate the strategy. Though its reach may not be as broad, its effect may run deeper than any other technique.
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