Figuring Social Media?

Recently, Jeremiah Owyang wrote about Intel’s community efforts, which also throws light on the join vs create debate that has intrigued me too, for quite sometime. Intel’s marketing manager is of the view that companies should join active communities, rather than trying to create them at corporate websites. The two examples used for Intel’s efforts are those it did at Digg and Slashdot. There’s also the middle path, start the conversation on social networks and then take them outside to you own site, but I’m not a big fan of that either.

I have a feeling that the reluctance for brands to join (as opposed to create) is because of the lack of control it entails. On their own website, it’d be easy. Besides, a neutral venue (like a social network) means that a brand cannot restrict its conversations to spokespersons it chooses, like British Airways and Virgin Atlantic found out to their dismay. There’s probably another reason why companies prefer their own websites – with company websites, it’d be easy to define and track ROI, based on the clicks, time spend etc, but how can ROI on activities on other sites be defined and calculated? Of course, there are ways to track online reputation, like Trackur, for example, but I wonder what metrics should be applied to figure out the effectiveness of an activity. After all, its no longer just a linear (banner – click, though that seems to be working well on social networks too) set of activities that happen on social networks now. But again, ROI entails that its an investment. From some of the activities I see on social media, I doubt whether many brands see it that way. Also, I agree with what’s discussed in this post – that ” The problem with trying to determine ROI for social media is you are trying to put numeric quantities around human interactions and conversations, which are not quantifiable”. While the ‘how’ is indeed a debate, we also need to be clear about what we measure. Here’s a great post by Dina on the subject on ROI, in which she also explores the things that should be measured.

I think its too early for brands to take examples of others’ activities and use them as a template for their own activities. After all, according to this article, a majority of marketing guys are still learning the media,  and apparently, close to 90% of them who are involved in programs are not measuring the ROI of theor efforts. Or maybe ‘too early’ is a wrong phrase, with the dynamic nature of social media, perhaps the time for fixed templates is over. Perhaps, there are only broad indications and inferences that can be derived, but brands would have to evolve their own set of activities, and their own methods of defining and tracking ‘ROI’ on social media, basis their strategic intent. (Nike seems to have done a smart job in that respect) ‘ROI’, because, I can’t think of any other term that would mean ‘results for the efforts made’. In this context, I’d also recommend this post very highly – the 5 critical responsibilities of a social media expert.

But perhaps, as this article notes, it needs to start way earlier, like companies allowing employees, access to YouTube, facebook etc in office, and understanding that the media consumption habits that digital natives have created are also creating changes in business environments and communication methodologies. Maybe that’s a good place to start a reworking of business strategy.

until next time, the medium is the message

PS. A great read on how remarkable companies are creating consumer evangelists (download pdf) (via Himanshu’s blog)