Brands are predicted to increase spending on social media over the coming years, but can the spending be justified? Marketing professor Mark Ritson has argued that social media spending has become a trend that brands feel pressured to follow and if they don’t they will have a ‘fear of missing out’.
Today we will discuss 4 times that spending lots of money on social media may not be advisable!
No return on investment
Do your results show no increase in sales when implementing social media? This may suggest that it is not working for your business, this may be due to many reasons such as the way it is being implemented, where it is being implemented and so on. Be sure to investigate the reason behind this rather than to continue to put money in areas of social media where it is not growing.
Target market interaction
Ensure that your core target market is actually present on social media. In many cases it may be advisable to reduce social media spending if your targeting a market that will not be exposed to the marketing messages. For example targeting seniors with insurance plans would not be advisable through large social media spending, in most cases traditional forms of marketing would be where a majority of the budget is spent.
According to the ‘World Marketing and Sales forum’ the 40 most followed accounts on social media are real people and the first brand which is ‘ The Australia open” comes in ranked 42nd (2015). Suggesting that social media is literally what is means , interaction between people and Mark Ritson has argued that brands are not welcome in such conversation.
Research from ‘Sensis’ has found that 94% of people using social network sites do so ‘to catch up with friends and family’ and only 22% do so ‘to find out about particular brand or businesses’. Further suggesting that the main purpose of social media is to stay social with people rather than to receive business and brand marketing.
‘Experian’ found that 66% of Australians are not actively following any brand on social media. Suggesting that placing too much money in social media and not enough in other forms of marketing will result in neglect of majority of the market.
Spending lots of money with no social media budget or a budget made with poor decision making is not advisable. It is important to ensure that you are spending money where it will be used the most effectively through research and past results. Ensuring the greatest exposure and meeting the results required to achieve business objectives.
Now although Mark Ritson’s arguments are applausable to some aspects of social media, they are not relevant for all. It is important to note that social media can be used as a support tool for traditional media. Direct results may not come from social media presence but it can result in sales and increased brand awareness amongst customers in store or in the future, which can be difficult to measure. It is also important to understand that customers may not want to continuously interactive with brands due to a dislike towards ads and advertising material. Consumers have been shown to have a positive attitude towards convenience and having a support forum there if they ever need and being able to browse their interests when they like through the use of social media. It is important for marketers to be aware of the 4 things that go wrong for brands within social media, put the customers first, not be oblivious to negative results and innovate continuously.
Thank you for reading my final blog.
I hope you have enjoyed the reads!