Social Media as a Marketing Channel

I just can’t get enough of this topic. The more I think about it, the more I want to share my opinion (yes, I'm very opinionated). I originally wanted to write about both social networks and video marketing on the Web, as they are 2009’s most demanded source of marketing channels in companies. After a long debate, I decided this article should focus only on social media and the value it adds or doesn’t add.

First, let’s look at the results posted by eMarketer’s last December on US marketers' plans for their online marketing budgets.

Another classic example of perpetual innovation in marketing, as we can see how rapidly and consistently new information-intensive technologies replace older ones, thus shifting the focus on the various marketing channels. Mobile, Rich Media, Podcasts and Search, though still having a presence in the map, have been significantly over-shadowed by Online Video and Social Media. So in this global market with changing products and services in a constricted economy, how valuable is Social Media? Is it all just hype that will take us nowhere? Let’s look into some factors that will help us determine the future of the Social Media (SM) wave.

1. SM & Globalization: The US Market today has been adopting SM at a good pace. There is still a big sector that needs to be captured, but overall the popularity of using SM as a medium to share information has been a plus. What about other parts of the world? Well, South America, Asia and Europe are also adapting to this new SM wave. This serves as a natural platform for US companies to continue marketing not only on domestic markets but also at international levels. 
2. SM & Consumers: Recent research has shown that 84% of Gen Y notices ads, especially at social networks, but only 19% of the ads are relevant to this demographic. This is something companies should understand, as blindly using SM as a channel will not produce results, but, rather, will become an overhead very soon. Identifying the consumer market that uses SM is important.
3. SM & Information: Similar to consumers, right information to the right audience will generate the right results. A patient will be the right target for pharmaceutical companies and not golf equipment manufacturers. 

Defining a solid marketing strategy for Social Media will give competitive advantage to companies.