Social media - New game, new rules, new winners

14 Februarie 2012

ERNST & YOUNG S.R.L.

 

Social media: New game, new rules, new winners

The speed at which social media has taken off has been unprecedented in the history of technological change. It has taken just seven years for Facebook to reach 750 million users worldwide and this is not the only social media site to have attracted large numbers of users in a very short space of time. This massive take-up is having a profound effect on the way in which customers seek information and make purchase decisions. So how can companies take advantage of the opportunities presented by social media to make their mark on this vast audience? And what drives customers to actively engage and follow some brands on social media sites and not others?

In Q2 2011, Ernst & Young conducted quantitative and qualitative research on 36 UK and international flagship brands with the aim of addressing these questions. Through the research, we have identified five key characteristics of ‘socially adaptable’ and successful brands, which we believe all organisations can adapt and learn:

• Facilitate open dialogue
• Engage proactively
• Connect beyond product
• Deliver integrated experiences
• Collaborate and co-develop

Our research also shows that companies need to make organisational changes in order to fully embrace the ‘new game’ of social media. From our work with clients, we have identified the three critical areas companies need to focus on to support a coherent and sustainable social media strategy:

• Spotting the ‘golden nuggets’ of data and generating value from them coordinatingsocial and traditional channels
• Coordinate social and traditional channels
• Empowering employees to engage with communities

These areas could make the difference between being a winner or a loser in the ‘new game’ of social media.

 

New game: Social media is the next competitive battle ground

Social media is here to stay

When compared to previous technological advances which have had a profound andlasting effect on society and commerce, the speed of adoption experienced by socialmedia is unparalleled. While it took radio 38 years and the Internet seven years to reach an audience of 50 million, Facebook achieved the same milestone in its third year.

As a result, for many people, interacting with friends, family members and colleaguesthrough social media sites and applications is now a part of everyday life. Blending social interaction with technology and user generated content; social media is now permeating almost every age and demographic grouping.

Figure 1: Percentage of internet users using social networks by age group

Source: Based on data from Pew Research Center’s Internet & American Life Project Surveys, September 2008—May 2010. All surveys of adults 18 and over.

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