Firms Alter Social Tactics Due to Low Buying Impact

Marketers are refining social media strategies as research shows social media's minimal direct effect on purchasing, reports the Wall Street Journal. Companies are taking note of information like the recent Gallup poll finding that 62% of the more than 18,000 U.S. consumers questioned said social media had no influence on their buying decisions. Gallup concludes that "consumers are highly adept at tuning out brand-related Facebook and Twitter content." At the same time, brand advertisers must deal with Facebook's changed management of users' news feeds, going from a largely chronological stream to featuring items Facebook thinks users will want. As a result, brands reached just 6.5% of their fans with Facebook posts in March, down from 16% in February 2012, according to EdgeRank Checker, a social-media analytics firm. So U.S. companies, which spent $5.1 billion on social-media advertising in 2013, are beginning to shift gears. Per the WSJ story, many are no longer seeking to maximize the quantity of Facebook fans or Twitter followers as much as the quality of interactions, by tracking brand mentions for example. However, this adjusting of social marketing strategies hasn't hurt Facebook so far, according to WSJ. Facebook first quarter net income nearly tripled on a 72% increase in revenue. For more of the article, read http://online.wsj.com/articles/companies-alter-social-media-strategies-1403499658

Online Review Turns Customers Into Advertisers

With customers the most influential source of brand advertising today, marketers need to embrace online review to feed the customer relationships and loyalty that create brand advocates, urges Trustpilot CMO Jan Vels Jensen in a recent imediaconnection blog post. A Nielsen survey finding that 84% of respondents said word-of-mouth recommendations from friends and family were more trustworthy than brand advertising should be a wake-up call to marketers about the value of customer voices. Creating an online review community shows consumers the human side of the brand before they make a purchase and allows companies to build trust and social proof, says Jensen. Brands can generate 40% additional revenue each year and lift sales by 18% by highlighting customer voices and incorporating online reviews into their advertising strategies, according to his data. Online reviews have also been shown to increase conversion rates, prevent basket abandonment and encourage repeat purchases and brand advocacy, he adds. And when customers are alerted to online reviews, it affects click-through rates on paid and organic search. Read the complete post at
http://blogs.imediaconnection.com/blog/2014/07/14/how-to-give-the-loudest-voice-to-your-best-advertisers-your-customers/