Among the biggest issues that came out of controversial initial public offering by Facebook is about the effectiveness of social media advertising and marketing. General Motors questioned the success of its campaign on the site and as a result pulled its ads.
But supporters and experts say that the social media are not the be all/end all when it comes to marketing efforts.
While technology advisory firm International Data Corp. is primarily speaking about home-based businesses, its findings could be ported over to small- and medium-sized businesses in general.
It noted approximately 40% of home-based businesses use social networks to promote their businesses. Social networking is still more often used as a supplement to web site ownership than a substitute for it, but roughly 20% of home-based businesses currently promote themselves on social networks and do not have a conventional web site.
"Web sites have provided a relatively inexpensive way for businesses to efficiently reach local and international markets since the 1990s—and yet less than half of home-based businesses currently have them," said
"Social networks have made online promotion less expensive and complicated, and Facebook and other social networks will become increasingly key players in empowering the marketing and commercial activity of home-based businesses."
Jalali Hartman, the CEO of Jacksonville Beach, Fla.-based technology firm Yovia, commented, "Facebook is actually a tremendous great source of traffic and leads. But simply running a Facebook ad is probably not going to work for many businesses. Advertising is no longer about clicks, but about real people interacting."
But experts note, the effectiveness of social media marketing may not be seen immediate. In fact, it could be some time down the road.
Randall Craig, a Toronto-based social media strategist, said, "developing relationships takes time, both in the real world and in social media."
To help this relationship development, there are many social media networks that can be used to promote your strengths to prospective customers. "Expert knowledge can be shared, or 'given', via text, video, or audio on a variety of platforms," he continued. "However, it is how you use the 'give' that will better ensure your 'get.’”
Craig offered a few tips when using social media in sales initiatives:
• Bait-and-switch is not a good networking strategy. If the invitation to meet or discuss is for one purpose, do not trot out something different. Doing this in any environment, even an online one, can send the wrong message.
• A blog is a great place to develop and explore ideas over a longer term. And in so doing, you can develop trust with your followers and build stronger relationships. Remember that communication is a two-way street so allowing comments on a blog can encourage conversation.
• Follow-up is critical. Webinar attendance, a web form filled-in, a real-life meeting, and a follow-up email are merely steps in building a relationship with potential clients. Similar to the blogging suggestion above, it develops trust.
