Social Media as a Branding Tool

While over 90% of major brand owners are now using social media such as Twitter and Linkedin, however social media still remains primarily a marketing medium rather one that generates tangible revenues according to a recent survey by Booz & Co and Buddy Media.

From 100 large organisations, (94%) listed Facebook among their top three social priorities, closely followed by Twitter on (77%), with YouTube lagging at (42%). Blogs and branded platforms scored (25%) each, LinkedIn posted (13%) and location-based tools like Foursquare received (8%).

The average organisation typically has 4 to 5 social media sites at present, set up by Marketing departments (81%); digital teams (62%), PR units (48%) and customer service groups (26%).

The general consensus (94%) was that being an early adopters and reacting quickly was essential to social media success. They also believed in having an internal “owner” and “champion” (93%), all of which was well supported by leadership and in-house education (90%).

What are they being used for?
The main use for sites such as facebook and twitter is advertising and promotions (96%), while (88%) used them for PR; 75% maintained open links for customer service and (56%) used them for market research.

Commercially, it is still early days, although (44%) expect to have revenue-generating platforms linked to social media in two years time. Just (40%) are employing them for sales purposes, and a further 46% think they deliver purchases and meaningful leads.

By contrast, (90%) mentioned benefits tied to brand building; 88% agreed they stimulated buzz, 81% referenced securing consumer insights and 78% cited enhanced marketing effectiveness.

A majority of companies also already have dashboards, and enjoy partnerships with specialist agencies as they follow a clear, integrated social media strategy.

Similarly, while 67% of businesses allocate less than 5% of digital marketing budgets to social channels today, a 55% share believe the proportion of new media spending directed to this route will be at least 10% three years into the future.

What this shows is that large, leading companies are shifting their marketing focus to actively transform their model from brand management to brand curation.

via Booz & Co & Buddy Media as read in WARC

Social buying and Flash sale sites: Generating revenue and creating loyalty within hospitality and private online travel clubs?

An interesting debate is going on within the hospitality and travel trade: should they participate in social buying/flash sale sites to supply fresh competitive deals?

The new kids on the block…private online clubs with exclusive hand-picked travel offers and very attractive savings of 60-70% off hotel rack rates and brochure prices….all with a limited time span, typically a few days or as as flash sale. The take up has been incredible. In line with the current love affair with social buying sites such as groupon, kgbdeals and other popular discounting and flash sale sites, they are emerging as a new distribution channel, poised to change the way consumers view their buying decisions.

The hospitality and travel trade are not sure of what to make of them. Some fear they are a reaction of the recessionary buying trends, while others are eager to jump on the band wagon. The emerging picture is that the field is divided. There are hoteliers who think that social buying/flash sites will ultimately lead to price and brand erosion, damaging the long term price integrity and overall online revenues. And there are the hoteliers who are more interested in the immediate results, filling rooms that may otherwise remain empty. Re-active? Certainly, but happy to exploit the here and now approach of this buying phenomena.

The fears being discussed include the fact that there is an oversaturation of players, leading to market share and revenue corrosion, consolidation and failures, together with a significant weakening from industry suppliers which will probably result in a weakening demand from the members of these sites. Loyalty may not even play any part in the decision making process.

According to Hitwise the popularity of flash sale websites with limited time & inventory offerings have grown exponentially over the two years. Online shoppers’ love for the thrill of snagging a bargain, be in experiences, travel, designer clothing, home décor, restaurant visit, beauty and spa treatments and even wine have caused visits to the category to increase 368% in July 2011 as compared to the same month two years ago and 109% one year ago.

Market Accents