Is social media over-hyped?

Posted on February 16, 2010 by Gary Chow | 1 Comment » | Trackback URL

A mate dropped by the other day. He asked me what I’ve been doing of late. I told him I’ve been looking into social media: reading, joining sites, learning. He laughed. Said social media was a complete waste of time. Couldn’t see the point of it. Said I should ‘get a life.’ Ouch!

This episode made me wonder. Is social media all it’s cracked up to be?

For the converted the answer is of course a resounding ‘yes’. Social media ‘gurus’ go as far as to say social media is revolutionary and transformational. Some say sites like Facebook and Twitter have already ‘profoundly changed our lives and how we interact with one another and  the world around us’. That’s a big call. Others say that social media will change the way we conduct business.

Too much hype?

My take on all this is somewhat in between. On the one hand, yes, I agree social media can offer businesses another channel in which to market its products and services and another way in which to build relationships with customers – all good. But on the other hand, I also think its powers are somewhat exaggerated, at least at this point in time.

I guess the operative words are: ‘At this point in time’.

In Australia, its impact has been low-key so far. Statistics indicate few large companies are using it and those who have adopted sites like Facebook are using it only in piecemeal fashion rather than as part of an integrated marketing strategy. It’s as if the powers-to-be are simply letting a few bright sparks within the organisation have their little plaything for awhile but not really supporting it in a major way. One suspects there’s  still a degree of suspicion and lingering doubt over its usefulness as a business tool. In fact, far from embracing social media as a marketing and relationship building tool, most companies still block access to its sites. There are exceptions of course. One company that is using Twitter well is surf clothing company, Billabong. Strangely enough, the financial services industry, often the leaders in embracing new technology have largely shunned social media.

In the US,  companies have embraced social media more fully and are effectively using blogs, Twitter and Facebook in a variety of ways to advance their businesses. Dell Computers is a perfect example of a large business using Twitter to not only to build relationships but to directly sell goods. Even conservative organisations like national broadcaster BBC are seeing the benefits of using social media to report the news.

As the uptake of social media among individuals continue to grow at an astonishing rate, 2010 may see Big Business finally embrace the technology more fully and start using it as a key channel for making money.

So am I a believer? Yes I am. As a way to network, to build relationships with your customers, to generate sales (see the case of Dell Computers) and as a cost-free means of gaining market feedback, social media sites are excellent vehicles. Best thing is, they are free to use although they do require a significant investment in time.

Oh, and by the way, I do have a life.