Archive for Amazon
October 26, 2008 at 9:46 pm · Filed under Social Media and tagged: Amazon, cnn, customer, Facebook, google maps, influencers, mapquest, Myspace, online communities, online discussion, online marketing, online users, Rubicon, wikipedia
Many critics argue that if only 10% of the population is creating 90% of online material, what is the value of a company spending its precious time to impact online users? Last week, Rubicon published a study that analyzes the use of social media networks by companies. Specifically, its findings support the need for social media in influencing a market.
“Most companies don’t understand how online communities work, how they make a difference, and how to engage with them. Among the companies that have tried to work with communities online, many have found that the conversation is dominated by extreme enthusiasts rather than average users, and have concluded that online community is a distraction from their real customers.
That turns out to be a very dangerous mistake.”
Rubicon insists that although research shows 80-90% of the material online IS created by only a small minority, this material is extremely influential in initiating and maintaining public opinion. In fact,
“Online comments and reviews posted by the enthusiasts are second only to word of mouth as a purchase driver for all web users.”
Most importantly, however, is the understanding of how online communication should function. Most companies feel that they need to communicate with their audience. And although this is an ideal situation, it is not always the most beneficial. Instead, Rubicon suggests that companies need to view communication in terms of who is listening and who will respond:
“Online discussion is a poor way to communicate with the average customer, because average customers don’t participate. But it is a great way to communicate to them, because average customers watch and listen. Most content and discussion sites should be viewed as performances, in which the site’s organizers interact with a relatively small number of users in order to educate, persuade, or entertain everyone else.”
Other interesting findings include the top three types of sites most visited,
“Social networking (such as Facebook and MySpace),
General news sites (such as CNN.com and NYTimes.com), and
Online Banking.”
and “which sites are eventually visited by the largest percent of web users.”
“Mapping (MapQuest and others),
Retail (Amazon.com and others), and
Reference (including Wikipedia).”
Rubicon’s study presents extremely important data pertaining to the use of online communication and social media tools. Specifically for businesses wishing to improve their online presence or even begin an online discussion, knowing how to interact and who to interact with will be essential. Read the entire study here, and decide for yourself.
October 5, 2008 at 12:20 pm · Filed under Social Media and tagged: Alamo Drafthouse, Amazon, blog, BlueFly, Camella Manges, E-Marketer, e-marketing, Facebook, Generation Y, Myspace, online marketing, online retailers, St. Edward's University, TechCrunch, Youtube
As we discussed in class, many social networks have begun to target our personal interests, what we are wearing, and even what our friends do that, may in turn, interest us. E-Marketer published an article on Thursday that examines this very phenomenon
According to the article, as members of Generation Y, we are more involved in social media outlets, online shopping, etc. In fact, “some 85% of Gen Y respondents said they participated in social networking, and 57% reported involvement with blogs.” Just as Camella Manges (the Director of St. Edward’s E-Marketing) discussed Thursday in class, businesses, universities, etc. need to adapt their marketing efforts to reflect this online use. Therefore, the article suggests, retailers are marketing to shoppers on their new “turf.” Of the online networks that are the most profitable, Facebook, Myspace, and Youtube reign supreme. Data from a survey done this August indicates that “of the 39.3% of retail respondents that use social networks, 32% have a page on Facebook, 27% on MySpace and 26% on YouTube.”
However, retailers are not only requenting our online hang outs; They need to understand our likes and dislikes. Well, what better source than ourselves? I bet you didn’t even know that you were providing retailers with this information, did you? In fact, you may even communicate what you like without writing what you like. It may simply be what you WEAR.
And not to worry if you simply refrain from filling out personal information on sites such as Facebook! Advertisers will still market your friends….and then come after you. According to research done by the Society for New Communications Research, 75% of consumer respondents choose the products and services that their friends chose (E-Marketer). Think about it: Have you ever seen your best friend buy a movie ticket from Alamo Drafthouse and then say, “That must be a great movie-I need to go see it!” Or at the very least…”I feel like seeing a movie too! Hmm…what should I see?” And you pull up the Drafthouse homepage.
Although this form of adverting may appear invasive, it can also be viewed as extremely convenient. For example, e-marketing using social media is not limited to Facebook examples. When was the last time you googled “cute shirt” or “new fashion styles”? Instead, you most likely saw an advertisement on a blog you read or simply went to a site that congregates several clothing stores and options together such as BlueFly or Amazon.
We are the victims of online marketing everyday. How does that make you feel?
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