Today, brands and products are (or should be) engaged in activities in online social networks, having a fan page (Facebook), become a treading topic (Twitter) and get thousands or millions of followers has become a principal element of any advertising strategy. In 3Metas we believe that the sudden importance of these new media for advertising agencies (and advertisers) come from different paths and join together to become the new communication channel everyone is looking for. Social networks are here to change the way we interact with the products we use daily and the companies that make them.
Brands get alert about changes on markets some time ago, consumer started to change and be more analytical and difficult to convince ( deceive) by advertising after exposure to millions of hours of television, radio, newspapers and magazines. Back in 1999 (which in Internet years is an eternity), the authors Chris Locke, Doc Searls, David Weinberger, Rick Levine presented a series of conclusions about markets changes: The Cluetrain Manifesto: The End of Business as Usual, an interesting book that sets out a list of ideas related with markets/customers interactions changes, each one of them is a simple but powerful idea that generally revolve around information sharing, establish conversations between representatives brand / product and consumers have more information and products available to the consumer.
In an earlier article, we discussed online social networks as an evolution of the social networks that humans build, the studies on which we based also show how humans as a group interact with markets. One interesting concept to analyze is product or service price generation based on demand, in general we know that the price of a product depends on the laws of supply and demand (Adam Smith, 1776), if a manufacturer can increase demand for their products or services the price will rise. That’s the biggest and most interesting contribution to brands from social media: growing demand and therefore grow products price or value perception.
The online social networks importance for brands and markets is reflected in the possibility of building a conversation with consumers, interact with them in new ways, listen and react, It is the possibility of applying the principles of the Cluetrain Manifesto using new communication channels.
The opportunity is huge for any company, is the opportunity to lead new media, to build huge groups of fans and people willing to speak good (or bad) of a product or service. But the risks are too great, some of them:
• Do not respond to the conversation, thinking that social networks are just another TV channel and not realize that success is two-way interaction (Perhaps the biggest mistake)
• Not to be authentic, current users are smart and recognize the differences between real and virtual world, there can be no contradictions between the levels of service and the promises of value that are advertised online and experience the consumer has with the real product.
• Run a media campaign and leave once they have achieved the objectives (so common in the political arena but which results in a later article)
Today all the brands and products are exploring new opportunities offered by online social networks, despite what you might think this is the formation of a new communication channel between the markets and consumers, it is a way to create the kind of conversation expected by Cluetrain Manifesto (1999). Here at 3Metas we believe that the biggest contribution from online social networks to brands and markets is increasing demand and its consequent impact on the price or perceived value of the product or service.
Social Media Lounge is a place for the construction and exchange of ideas related to Social Media, its application in business scenarios, tools and success stories. Every week will address a topic. This is our first season.
3Metas is a digital strategy company that designs, implements and executes plans to use digital technologies to help clients achieve strategic objectives. 3Metas work is reflected in service-oriented applications (SOA), Web sites, mobile applications, applications on social networks like Facebook, social network customization such as YouTube, Twitter and also in the way we build and monitor online customers’ reputation.