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The Risk Facing Social Media

• Business
• Crossing the Chasm
• Facebook
• Geoffrey Moore
• Marketing and Advertising
• SME Marketing
• Why Social Media

Social Media marketing faces a serious risk to its adoption by business.

Many already question whether it is a fad? And if these risks are not addressed then it could well be perceived as a fad?

The hype that presently surrounds Social Media marketing has many of the hallmarks of the late 1990′s and its hype regarding integrated business systems.

The Chasm

Social Media Marketing has its basis in technology arguably web 2.0 tools. Therefore it is considered that some aspects of Geoffrey Moore’s, Crossing the Chasm (1991) could be applied to Social Media Marketing.  (note image source wikipedia)

Early Adopter Stage

In life cycle terms Social Media Marketing for business is very much in its early adopter stage.

Early adopters, like us, are the enthusiasts who see the business potential. To businesses like us, we see the potential of Social Media marketing as a way to achieve our business goals. We are driven by dreams and aspirations for improving our business marketing using Social Media marketing without the need for definitive proof that it will work before we start.

However this is the stage at which results must begin to match dreams.

visionaries are easy to sell but very hard to please… because they are buying a dream…

This is where the real risk for Social Media lies!

It must be seen to deliver the results expected. And it is this expectation that it at the very heart of the risk facing Social Media marketing’s future.

Hype Setting Unrealistic Expectations

Social Media Marketing has certainly been hyped up in some many quarters as the new marketing approach for the new age. Whether deliberate or not, expectations are being set that Social Media marketing will deliver above average returns on marketing effort.

If visionaries can only achieve average results or arguably even slightly above average results, their perception may be that their Social Media marketing experiment has failed. Based on the concept that satisfaction is achieved when perception exceeds expectations. For example if you have really high expectations but perceive only above average results then you will be dissatisfied.

Metric’s Needed to Moderate Expectations

The second problem is the absence of benchmarks or metrics to moderate or help define a reasonable set of expectations. Moderation of expectations may be needed by Social Media, given the hype especially by those who advocating the wonderful benefits of “going viral”.

However there is an understandable paucity of metrics to gauge the success of social media marketing due to its infancy. Some research is being to emerge to help guide and even moderate expectation thinking. However such research is still limited, effectively meaning that a real risk exists of visionaries having unrealistic expectations of success hence being disappointed when those expectations are not met.

Risk of Focusing on Applications (Tools) Not Strategy

The next risk element facing Social Media marketing is the focus on tools (applications), ie Twitter, Facebook, Blogs, Linked in etc rather than a coherent strategy. Twitter and Facebook’s dominance in the mainstream media may lead to some visionaries building business dreams on the basis of just using one or two of these applications. Such an approach to those of us who are beginning to understand Social Media marketing is fatally flawed.

Social Media marketing requires a coherent strategy with a defined purpose, such as increasing web traffic, increasing sales leads, improving brand awareness or customer retention. Flowing from the purpose objectives can be set. Knowing both the purpose and objectives means that the appropriate applications and resources can be determined. Whilst the absence of metrics (as discussed above) may limit the hardness of objectives this should not be used as an excuse not to create a strategy.

Pressure is On Social Media Marketing

Finally the pressure is mounting on Social Media marketing and with it the risk of perceived failure in the broader business community. In addition to the risks discussed above is the pressure coming from the volume of companies who are planning to undertake Social Media marketing. The Center for Media Research found that…

After surveying more than 1,000 people with media buying or planning responsibilities, the center found that “having a presence on social networks” is one of the top priorities for media plans in 2010.

As Sean Carlton (former Dean of Philadelphia University’s School of Design + Media) from Clickz.com puts it many of these companies are creating a presence with out a strategy.

Bad Publicity will Create a Bigger Chasm

It will take time for Social Media marketing advocates to develop case studies proving the benefits, plus defining the metrics as well as providing the infra-structure of education, consultants, resources etc to teach the “how to’s”.

The clock is ticking though as the high volume of “newbies” entering the social media marketing space creates a real risk of bad publicity. Newbies who fail will be quick to tell the world, “oh we tried that and it didn’t work.” Bad news always travels faster and wider than good news, its human nature.

To cross the chasm, ie to start to become part of the main stream marketing, Social Media marketing needs third party referencing. The early majority, that segment on the other side of the chasm, look to others in their industry for proof that something works:

Pragamatists tend to be ‘vertically’ oriented, meaning that they communicate more with others like themselves within their own industry than do technology

If some in the industry have been early adopters who have failed to be successful then word will spread. This will have the impact of slowing the adoption of Social Media marketing in that industry. Effectively deepening or widening the chasm depending upon your perspective.

Social Media Marketing is at a Cross Roads

Social Media Marketing has a future and it will in time become a standard component of marketing strategy. However it does face risks to its short term future from over hyped expectations and the focus on tools not strategy.

Greater emphasis needs to be placed on developing strategic frameworks/ guides and as well as metrics, case studies and other reference material to help support the successful use of Social Media marketing.

If you believe in Social Media, and we do, then we need to focus less on hype and more on the tools to help support its growth!

About Us

Making Life Ezy provide business management solutions with integrated web and social media solutions to the Hire/ Rental Industry.  For more information email us at sales@makinglifeezy.com.au or visit our web site www.makinglifeezy.com.au

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• Why Social Media Measurement needs to Catch Up to Adoption (visinsights)