Why are social networks important to my business?

Social networks should be in your marketing plan

Social networks are groups of interconnected individuals, organizations and businesses on the Internet.

Popular social networking Web sites include MySpace, Facebook and LinkedIn. Also, blogs (like online diaries) and blogging services such as WordPress, Blogger and Twitter allow sharing of ideas and activities.

These sites are important marketing tools because they have many millions of members. Facebook, for example, has 200 million users, half of whom visit the site daily, according to the American Marketing Association. Membership is exploding, with women ages 35 to 54 the fastest-growing segment.

Your competition is almost certainly using these sites. Advertising on social networks is up 17 percent this year, and often with very good results. The American Marketing Association reports that, on average, companies with high levels of social media activity experienced an 18 percent increase in revenue in the last year.

As marketers, we try to advertise to our most likely customers for best effect, and social networks are a great way to do this by age, education and interests. MySpace tends to attract a teen and young adult crowd. Facebook started with college students and recent grads but has grown well past its college roots. LinkedIn is a site for professionals to network; it’s also a terrific place to find skilled employees. Marketers choose the sites that best fit their typical customer.

Finally, these sites are free. Optional ads may be purchased that are shown when a profile contains certain words. For example, a store selling canoes and kayaks may pay Facebook to show its ad when a profile contains the word “kayak.” Otherwise, your business or organization may have a page on these sites at no cost and then any number of fans may sign up to read about your business, events, ideas and more.

Social networks should be in your marketing plan - Kansas City Star

Social networks allow you to have meaningful contacts and conversations with your best customers, who will then introduce you to their friends — your next best customers! People overwhelmingly trust a referral from a friend over a communication directly from a company.

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