Social Web and Business

The Power of Social Media in the Business World

What is Social Media?

Online channels that allow users to

create, comment on, share, and interact

with others via user-created content.

Videos

Text

Audio

Photosstephanierobbins.comSource: Cohen, 2011

Social Media for BusinessOnline tools that allow businesses to engage, attract, and influence customers by supplying targeted, relevant content in real time.

Source: Pulizzi, 2011

stephanierobbins.com

Why Should Businesses Use Social Media?

As of October 2011 internet users spent an average of nearly 35 billion hours per month on social networking

Social networks are the most visited sites, and

the user base continues to grow

Source: Contreras, 2012

Nearly 158 million social network users in the U.S., BUT

Top 5 Countries with Increase in Social Networking Users

2012

Brazil 14.4%

China 19.9%

India 51.7%

Indonesia 51.6%

Mexico 17.9%

The number of users world-

wide continues to grow

Source: eMarketer, 2012

Reach farther to interact with customers from different locations

faster than ever before

Social media provides networking possibilities

beyond the normal brick and mortar locations

Businesses reach more international customers at a higher rate than ever before Depositphotos.com

Draw traffic to both online and location settings

Use of Facebook allows customers to share their experiences with

others to drive more traffic

123rtf.com

Ways businesses can use social media

Customers Potential employees Provide ads to

targeted consumers Increase brand

awareness

Online only organizations/startup businesses

Gain followers via use of “likes” and “recommendations”

Source: Contreras, 2012

Effects of Social Media on Customer Base

Consumers trust other consumers more than business-

generated ads

92% of all consumers across the

globe value word-of-mouth and personal

recommendations over any other form of advertising

The second most-trusted advertising according to 70% of these consumers is user reviews

Source: Grimes, 2012

Number of Social Media Users

Contreras, 2012

What does this mean to businesses?

Customers put more

emphasis on what other

consumers say about an

organization or product

than they do about what

they view in brand

generated ads

Source: Sengupta, 2012

Facebook Ads Begin with a Single Like

Initial “Like” is seen by all

of “Friend A’s” friends

Those friends

“Like” the same thing

Those “Likes” are

sent to their friends

The process

continues

Generating more “Likes”

and ads

With 800 million users per month, this process generates billions of free advertisements with little to

no work required from the original company.

Source: Contreras, 2012

Businesses that use Social Media have the potential to reach consumers around the

world

Increased

Brand

Awareness

Customer Base

Recognition Vector-art-graphics.com

Social Media =

Organizational growth Increased profits Greater brand awareness More consumers faster than ever before possible

Is your organization on board?

Social Media

Mindy Horton

References Cohen, H. & Pulizzi, J. (2012) 30 Social Media Definitions Retrieved from http://heidicohen.com/social-media-definition/

Contreras, E. (2012) The State of Social Media & Social Media Marketing Retrieved from

http://www.slideshare.net/socialnerdia/2h12-the-state-of-social-media-and-social-media-marketing-in-the-second-half-

of-2012-13488609

eMarketer (2012) Social Media in the Marketing Mix –Global Best Practices Retrieved from

http://www.slideshare.net/eMarketerInc/emarketer-webinar-social-media-in-the-marketing-mixglobal-best-

practices-12621321

Depositphotos.com (2012) Image Slide 6 Retrieved from http://depositphotos.com/9234549/stock-illustration-Social-

Media-wheel-with-spokes--and-icons.html

Grimes, M. (2012) Global Consumers Trust in ‘Earned’ Advertising Grows in Importance Retrieved from

http://www.nielsen.com/us/en/insights/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html

Sengupta, S. (2012) On Facebook, ‘Likes’ Become Ads Retrieved from

http://www.cnbc.com/id/47641930/On_Facebook_Likes_Become_Ads

Vectorgraphics.com (2012) Image Slide 14 Retrieved from http://vectorartgraphics.com

123rf.com (2012) Image Slide 7 Retrieved from http://www.123rf.com