Companies are deciding to put more marketing money behind social media marketing over traditional marketing mediums.
Social media marketing is growing at an exponential rate, so it’s not surprising to learn that major companies are shifting their focus to digital marketing over traditional mediums like television and paper ads. With the explosion of Smartphones and touch pads, consumers are relying on technology to keep them connected with their favorite brands, and they are doing most of their consuming online. As a result companies are moving marketing dollars to social media in order to meet consumers where they are spending most of their time.
At Ad Age’s Digital Conference this year, Luxury car-maker Lexus said that less than 50% of their media marketing is going toward television and that they are focusing on digital marketing efforts. Converse’s Chief Marketing Officer, Geoff Cottrill, said “social media is unavoidable,” and that the company is spending 90% of their marketing dollars in “emerging media.” People are talking on Facebook about the brands they know and love, and according to Cottrill, the sooner brand managers can get in on the conversation, the better.
Retailers are also reaching out to customers through digital couponing sites like Groupon and Living Social. Not only does this help them drive business, but it raises brand awareness and helps consumers connect with the brands they like. Cost-conscious consumers are seeking out deals and are engaging with brands more readily through social media, particularly through Facebook. In a survey conducted by Morpace, findings showed that 37% of Facebook users joined business fan pages because they were interested in receiving the coupon or special offer. Respondents also said that they like to share the brands they like and support with their friends and family. Again, people are talking on social media sites, which generates buzz, and buzz builds awareness.
Since social media is an inexpensive way to raise brand awareness and connect with consumers on a more personal level, it’s a no-brainer for companies to be focusing on this marketing medium. In addition to cutting costs and raising awareness, using social media platforms for marketing purposes also helps increase search engine optimization (SEO) rankings, making websites more visible in search results, thereby increasing traffic on a site. And that’s something that’s easy to “Like.”