Here’s an article from my September 2010 CAMagazine column:
It’s no secret that social networks are booming. But let’s put into perspective how quickly they are growing. It took radio 38 years to hit 50 million users. Television took 13 years, the Internet four years and the iPhone three years. In that context, now consider that Facebook is adding 20 million users a month and Twitter reports more than 300,000 people are signing up every day. These statistics are mind-boggling, even to someone like me who has been online since 1981.
Much of this rapid growth is driven by the younger generation: 50% of the global population is less than 25 — and in North America, 96% of them use Facebook. That’s a pretty astonishing percentage. Social networking is also increasing as people use their mobile devices to continually share their thoughts, access social media content and see what their friends are up to. Software such as Tweetdeck lets people access and filter the flood of information that flows through Twitter, whether it is related to the friends and people they follow or to track information posted about breaking news.
But social networks aren’t just inane thoughts people post to their Facebook and Twitter accounts; it’s the flood of video and pictures that people place online. YouTube reports that some 24 hours of video are uploaded to the service every minute — and when the iPhone was released, YouTube traffic rose by 1,700%.
What is perhaps most significant is that social networks are changing the very nature of how people search for information. At this point, Facebook is used for more searches than Google. And at 600 million queries a day, Twitter is now the largest search engine in the world.
What does it all mean? The key point here is that when people search for information on goods and services, they turn to other people on social networks for advice and guidance more often than they consult producers of the product or service itself. At this point, one out of four online searches for the top 20 global brands end up with user generated content, such as information on blogs, as well as what people post to Twitter and Facebook.
The result is that organizations are having to think about advertising and branding in completely different ways. In the olden days a company could figure out an advertising and marketing strategy, build a campaign and put it out to the public. Today, lots of people are having lots of “conversations” about many topics, including the products and services that they use on a daily basis. They’re placing online both positive and negative insight. And increasingly, when we search for information about a product or service, we’re accessing that insight, in addition to — or sometimes in place of — a company’s carefully crafted message.
That’s why organizations are scrambling to change their approach to marketing and advertising.
Last year, I had the opportunity to speak at the annual Consumer Electronics Association CEO Summit in California. It was a pretty fascinating crowd, with senior executives from a variety of global entertainment and technology companies, as well as major global retailers that sell their products. The rapid pace of change in the online world, particularly with respect to social networks, is coming to influence these markets. It’s been reported, for example, that IBM has combined some of its marketing and PR staff to deal with the impact of social networking. And Pepsi now devotes one-third of its advertising budget to interactive and social media.
The bottom line? Companies must think about how to reach their customers in new and different ways.