Monetizing Social Media
Social networking is clearly on the minds of marketers these days, as an increasing number of vendors are launching solutions that offer brands the ability to send targeted advertising to sites. The niche audiences on social networking sites offer a wealth of potential for brand marketers. And vendors are looking to leverage that opportunity.
Last week I spoke with two vendors—FAST and Inkriti—which both offer the ability to collect and analyze customer data from social media to either enhance products and services or create and send targeted advertising to the audiences on those sites.
Vinod Pabba, CEO of Inkriti, told me that a company which manufactures baseball caps in China, recently started aggregating social media to collect feedback on its merchandise. Because of that, the company was able to correct a sizing mistake on thousands of caps. Pabba explained: “Aggregating social media in real time helps to find problems in areas where you don’t even think you have problems. It doesn’t take away the need for service, it just complements it.”
On November 6, Loop’d Network, a social media platform for online sports communities, will debut. The company will help businesses match their brands to their target demographic through viral marketing thus “blending” brands into the online sporting social community experience. Monster Energy is a customer.
As more solutions emerge in the marketplace to help companies monetize social media, these vendors must keep in mind that companies need to develop a strategy first, rather than rush into this new forum unprepared.
Perry Solomon, vice president of business development and general manager of FAST, warns that there’s still a complexity involved with integrating brands with social media. Many executives still don’t even understand how to leverage it.
Solomon says brand marketing on these sites is challenging for three reasons: 1. the complexity of data when dealing with content from various sources, 2. keeping content fresh, and 3. managing the intricacy of business rules.
Social media has clearly taken a definitive hold on the future of branding. But when getting caught in the online frenzy, marketers must first map out a careful plan and create conditions that in the end provide value for the end user, or customers. Such a strategy requires a creating a cautious balance between customer insights and technology that will serve as a factor for effective communication through social media.
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