Wednesday, April 17, 2013

Social Media's Impact On Advertising


Before we get into discussing social media’s impact, I want to briefly talk about the World Economic Forum in Davos, some business leaders were asked: ‘how is social media changing how you do your business?’, and their answers provide some very interesting insights. Carlos Ghosn, CEO of Renault-Nissan points out that social media is particularly important when launching a new product, and he also touches on the crucial point of ‘collective intelligence’; a key business opportunity provided by social media. Social media tools allow for businesses to connect to customers and listen to them – this feedback, in turn, can either be ignored, or instead, turned into immense business leverage to enhance a product and/or service.  
Here we can get the idea that social media plays a crucial role on company’s advertising, engaging on social networks can promote company’s brand and connect with target audience. Content shared on social media amplifies your brand’s presence, while transparent social exchanges project its authenticity. This creates relationships with new customers and strengthens relationships with existing customers.
Companies with a future vision need to proactively leverage social media to drive their social media advertising efforts. Tweeting, posting and blogging help leverage their products and boost brand. It’s all about creating a buzz among the audience, people follow the product, ask questions, blog about it, make compliments or air opinions with their friends and colleagues, whether businesses are there to hear them or not. In today’s world, the more you talk about something, the more people want to check it out, and the more famous the product become. So it creates more invisible power and influence than TV and newspaper advertising does. In addition, these conversations between different people groups on social media can deliver valuable commercial information that may drive sales and customer satisfaction if the company is capable to take advantage of it. But this is easier said than done and takes a lot more effort than setting up a company page on Facebook or Twitter. We’ll discuss this more in the following blogs.

 Davos interview on Social Media:

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