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Social Media... show me the money!

Will display advertising will deliver the monetization social networks need to stay afloat. I'm not so sure.

Apple have it right with their App Store. Salesforce.com are making money from force.com, Google Apps ditto. What do all of these have in common?

Platforms, platforms, platforms, platforms. I think the future of monetization on the web will be in platforms that can deliver a rich application ecosystem. People will pay for applications that are priced right and deliver functionality (or frivolity). Each of these platforms of course have a unique value proposition - mobility for the App Store, social graph for Facebook, useability for Google Apps, business productivity for Salesforce. Certainly, every mobile vendor under the sun now has an app store.

I recently paid $70 for a GPS app on the iPhone. Why? Because I didn't have a GPS and it made sense to purchase a $70 app rather than another $300 gadget. There is no reason why I wouldn't pay for the right app at the right price on Facebook.

Is Twitter A Fad?

Those who are calling Twitter a  fad are missing the point. Twitter is simply a very effective "one to many" communication medium. Twitter as we know it will certainly pass, either evolving or being superseded by something else. Does that mean individuals and business should not be investing time and resources building their presence on it? No. Does that mean that it has disrupted how we communicate and congregate across geographical boundaries? Yes. Will understanding and building strategies around Twitter hold you in good stead for "the next big thing"? Yes.

Meaningful dialogue the key to social media

Think about it, if you had an opportunity to conduct a meaningful, ongoing dialogue about your brand, company or product would you take it? When viewing social media this way it provides the basis for the development of a social media strategy. Mention meaningful conversation or ongoing dialogue to your CEO however and you would most likely be met with a blank stare or bemused smile. So how can a company utilize social media to engage with current and potential customers?

1. The first step would be to identify the top social networks where your customers or potential customers may frequent and join in the conversation (and it is a conversation).

• Twitter - Search on keywords, individuals and companies to follow relevant to your industry. Contribute. Add value.
  
• Facebook - Search and join relevant groups, pages. Contribute content. Build  and promote community.
• LinkedIn - Answer questions about your area of expertise. Ask questions, help the professional community.
• RSS - Blog about your industry, upload relevant content. Use Feedburner. There is a significant subset of people who chose to utilize email subscriptions and RSS. Don't neglect them.

2. Measure your success! Implement analytics (Google Analytics) on your website. Measure the most effective activities which drive traffic to and activity on your website. For an overall brand engagement metric, you can try Net Promoter Score as a way to measure your success. Adjust and focus your social media efforts accordingly.

3. Start today. Most suggestions in this post can be implemented immediately and at an incremental cost. The most effective use of social media is to start using social media.

So the common thread for effective social media marketing is to promote community around your brand, add value and initiate and contribute to meaningful conversations - if you're doing none of those things what are you waiting for?

Should companies police employee use of social media?

A pertinent question was asked by a member of the LinkedIn community. Should companies police employee use of LinkedIn? The question strikes at the heart of how many companies are still struggling to understand social media and its impact inside and outside the organisation. There are a few considerations.

1. Is social media an effective way to engage customers and employees?

2. Are companies better off regulating or educating their employees about the use of social media?

In my opinion, regulating the use of social media is not only futile, it's counter-productive. If your company has disengaged employees or unhappy customers there are probably wider issues to worry about than whether they are venting their frustration on LinkedIn or Twitter.

Social media is an effective way to conduct conversations with your companies constituents in a context meaningful to them. Who knows, it might actually help achieve some business objectives along the way.

Social Media marketing can start internally

Many organisations are struggling to establish their brand in social media circles. An often overlooked strategy for testing the waters is to implement social media tools internally. Not only will it drive adoption and awareness of the power of social media to connect with customers, it might actually make your team more productive.

2009 Internet Strategy Forum Corporate Internet Executive Research Study 4-Page Sample Brief