Social media chasing is a popular pastime of business owners and marketing professionals everywhere. As the proliferation of social media platforms continues, it’s impossible for businesses of any size to ignore this space. A recent article in the American Marketing Association highlights a survey performed by Duke’s school of business where CMOs reported that they planned to increase their investment on social media from 9.4% to 21.4% over the next 5 years (that’s almost 18% increase year over year)!
While the article goes on to talk about this serving as a “hedging” bets function, it reads to us like they are doubling down on the same bet they were making before.
News that Twitter has begun offering a “Buy now” option for a select group of businesses during an initial rollout certainly has businesses atwitter with the exciting possibilities that social media has to offer, especially for e-commerce.
We find a recent study from Gallup provides a sobering reality, which is that 62% of Americans surveyed show that social media has “no influence at all” on their purchasing decisions.
We do think it’s likely that as social media continues to mature and new avenues of engaging with networks of people are created, this number will decline. But will this decline be significant enough to match the optimistic spending expectations of CMOs all over?
Only time will tell. For Inspire clients, we recommend maintaining social media as part of your marketing portfolio.
The amount you invest in social media will vary depending on your business type and your audience.
Whether your business is B2B, B2C, product or service, the decision how much to invest in social media is based on the nature of your audience. Businesses with tightly knit communities with few dominant customer profiles (1 or 2 compatible types) are more likely to benefit from a higher investment in organic social media. Businesses with broad communities (wide collection of diverse profiles) are less likely to benefit from a higher investment in organic social media but may find value in advertising.