Social Media is an Appreciating Asset

Posted by Brian Cavoli on September 21st, 2010 in ,

The Boston Ad Club held their Media Innovation Day event last week. On the social media panel, Walter Sabo of Hitviews made a great comment about social media. He referred to it as an appreciating asset, while paid media is not. This is a fun way to look at social media. Creating content and encouraging others to participate in discussion about your products creates digital assets for your brand that grow in value over time.

Here are some points to think about when planning your media investment portfolio.

  • An ad makes a momentary impression on someone, if it’s noticed, and then it’s gone.  Social media lasts forever on the web, especially in the Google index. Search engines are constantly evolving to incorporate more social content on the results page.   Take a look at the customer reviews on Amazon, it is not uncommon for the reviews listed first and rated “most helpful” to be among the oldest.
  • Even if people talk about your ad, the discussion won’t always have value to someone searching the web to research a purchase.  Take a look at what people are saying when they talk about the Old Spice videos. A good social media investment encourages people to share how they feel about the product and why other might want to use it.
  • Social media is not just on the websites in a media plan. Discussions are going to spread out to every corner of the web – Amazon reviews, discussion boards, blogs Facebook, LinkedIn, Twitter – anywhere your customers think they belong.
  • Social media may not be as slick as an ad, but it’s much more believable. Online shoppers say recommendations from friends in social communities are twice as valuable as recommendations from retailers.
  • Quality social media discussions are much more likely to go viral.  People want to help each other, show off a little, and add to the ongoing conversation. The more people who see discussion about your product, the more it attracts other contributions, increasing the number people it can influence.
  • Social media makes your ads more effective.  ComScore found a 50% click through rate increase in paid search when consumers were exposed to brand influenced social media.

When you think about making an investment to grow your business, make sure you invest enough in the assets that grow in value.

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