You may be asking yourself..what is the big deal over social media marketing? Why are so many businesses turning away from traditional marketing and dwelling into this new and exciting form of marketing. Well thanks to the amazing group of guys at NIELSEN. I have compiled a list of interesting facts that should answer all your questions.
The Popularity of online social networking and video content is deepening web users’ engagement with the internet and is causing a dramatic shift in the global online landscape – both for consumers and for advertisers. Since 2003, the interests of the average online user have shifted significantly, evolving from use of “short-tail” portal-oriented browsing sites – such as shopping directories, guides and internet tools – to sites that contain more specialized “long-tail” content geared to specific and interactive user interests.This change is manifested by the fact that video and social networking sites are the two fastest growing categories in 2009, and will necessitate new ways of thinking about online marketing.
Major highlights from the Global Online Media online landscape report (I got from the guys at NIELSEN…thanks) regarding online video and social networks:
- The number of American users frequenting online video destinations has climbed 339% since 2003. The unique audience for online video surpassed that of email in November 2007.
- Time spent on video sites has shot up almost 2,000% over the same period.
- In the past year, unique viewers of online video grew 10%, the number of streams grew 41%, the streams per user grew 27% and the total minutes engaged with online video grew 71%.
- There are 87% more online social media users now than in 2003, with 883% more time devoted to those sites.
- In the past year, time spent on social networking sites has surged 73%.
- In February 2009, social network usage exceeded web-based e-mail usage for the first time:
So where is traditional/online advertising in this picture?
With the global recession in full swing, online display advertising has plateaued at 20% of total online ad spend in the US. Not surprisingly, online advertising by financial services, automobile and retail companies has declined steeply as a result of ongoing troubles in those industries
On the other hand, several key industries that historically spend significant amounts on advertising – such as healthcare, consumer products and telecommunications – appear to be moving even more spending online.
As a result, though online advertising appears to have lost some of its “favored child status,” the longer-term prospects for global online advertising when the recession abates are brighter, suggesting several reasons why online advertising will continue to be critical:
- Led by social media, search and video, the internet’s share of total ad spend will continue its steady upward trend as global economies emerge from the current recession.
- Given the increased focus on digital marketing by leading packaged goods companies, the internet’s share of commerce will continue to rise as well.
- Marketers are being forced to adapt to social networking capabilities. In the age of Twitter, feedback barriers have all but disappeared, creating a near friction-free environment for playing back brand experience, campaign reactions or brand events.
- The growing use of the mobile web is supporting increasing consumer engagement with web content, in more places and at more times. Some 30% of U.S. mobile subscribers recalled seeing some form of advertising while using their mobile phones, up from 18% one year prior.
The internet remains a place of continuing innovation, with users finding new ways to integrate online usage into their daily lives.
In recent years the Internet has changed dramatically as people seek more personalized relationships online. In particular, time spent on social networks and video sites has increased astronomically. Advertisers are starting to positively re-assess the value of the online experience and create more meaningful relationships with consumers.
The Nielsen report which is freely posted on their site (thanks again!) spots trends in a multitude of countries on several continents, also noted that advertisers are increasingly starting to look at their media mix more holistically than ever before.
Let’s face it, the world of social media marketing is here to stay, swimming against the current in this situation would be economic suicide, the tides of change are upon and it is up to us a business owners, corporations and entrepreneurs to ask ourselves not just questions like “do I need social media marketing?” But instead ask yourself, “how am I going to get myself a piece of that big social media pie before it’s all eaten up.”
If you have any other questions on social media marketing and how you can take this information and integrate it into your business strategy, then visit us at www.majesticsocialmedia.com