Why Companies Are Catching On To Social Media
March 8th, 2010 by Ken YeungTwitter’s attraction in the past year or so has been quite intriguing. For most companies, there’s probably still some confusion as to what it’s good for to generate leads, sales, profits, etc., but this number is slowly dwindling as the months go by. And in a sure sign of Twitter’s growing popularity, a study conducted by the Society of New Communications Research (SNCR) found out that in 2009, companies listed in the Fortune 500 were eagerly signing up and jumping on the Twitter bandwagon. It seems that these large brands like General Motors, Exxon Mobil, US Steel, General Electric, Proctor & Gamble and Boeing are finally understanding the potential Twitter can play across all spectrums of the communication channel.
Here are some other interesting statistics:
- AdWeek reports that 35% of the Fortune 500 companies on Twitter had active accounts – meaning that they had posted something within the past 30 days.
- With the top 100 companies, 47 of them actually had a Twitter account
- 22% of all the Fortune 500 brands only had “public-facing corporate blogs”
- 4 of the 5 top corporations consistently post to their Twitter account – Wal-Mart, Chevron, ConocoPhillips, and GE
- Insurance was the industry with the largest Twitter presence – 13 Fortune companies participating
- 19% of Fortune 500 corporations were using podcasting and 31% using video blogging
So what does this mean? From the standpoint of companies and brands, it shows that now the large companies are starting to pay attention to social media. In its infancy, social media was probably viewed by large corporations as something that couldn’t scale. However, more companies are now embracing it and what may have started out as a small experiment within brands like Wal-Mart, Chevron, ConocoPhillips and GE has exploded into being a major part of their marketing channel.
But why is Twitter becoming the medium of choice to communicate with customers instead of blogging? Sure, blogging will get you to post your own thoughts and get your message across, but when you compare the potential audience on Twitter versus the one currently visiting your blog, there’s a big difference. For one, you can send out a tweet to anyone - just a random thought on Twitter and it’s not limited to being seen by the people following you. Secondly, you’re going to be able to see how viral your message can really get through retweets and commentary. Without wanting to sound cliche, you’re going to be able to join in the “conversation” in near ‘real-time” as well. Imagine being in a large reception area where people are talking about different things. You being there is representative of you being on Twitter. In walking around, you might hear something said about your company, brand and/or product OR something else not-related, but interesting. By you interjecting to be a part of that discussion, you’re engaging customers. You can’t necessarily do exactly that in a blog, or at least not in real-time. This is probably what companies are discovering and find that Twitter lets them relate to their customers on their level, NOT from the customer. This is pretty much the same thing with all other forms of social media.
So what is the power behind this social media and what is its appeal? It seems pretty clear that companies are starting to think more “outside the box” and seeing a little less clutter in social media than there are with other mediums like traditional advertising, radio/broadcast, websites, etc. Also, the statistics shown above are saying that these Fortune 500 companies are thinking that if they want to get involved with customers, they’re going to have to find a new way of reaching them – essentially going to where the customers are spending their time.
Source: AdWeek and iMediaConnection



