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BizReport : Research archives : July 24, 2009

Study: Social does pay

Much has been said of late about what should and shouldn't be done in the social marketplace, but if you're still wondering if social marketing pays or is simply another place to play, read on. According to a recent study from Altimeter Group and social platform Wetpaint, brands active in the social space saw revenues increase by about 18% over the past year.

by Kristina Knight

That is quite a jump when you take into account the soggy economy, both global and in the US.

Brands who were not socially active saw sales decrease by about 6%.

The brands showing the best increases? Coffee brand Starbucks, computer company Dell and online auctioneer eBay. Google and Microsoft were also in the top five. These companies aren't just in the social space, they have workers dedicated to Twittering, Facebooking and MySpacing with consumers. By having a dedicated 'social squad' these brands are better able to handle problems which crop up before the problems become a rant throughout the online world.

What is spelling the difference for brands in the social marketplace? According to this study it is the engagement level of consumers. In the social realm, consumers are more engaged because they are involved with friends; getting a brand recommendation or finding a brand with similar 'tastes' as them is a natural way to increase brand awareness and loyalty.

Tags: Altimeter Group, brand awareness, brand loyalty, social marketing, social networks, social payoff, Wetpaint

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