By: Stephen Dow, NetSpeak Solutions
A full-scale “war” between Facebook and Google is now looming – maybe even “in-play”, and it’s bound to get nastier. Most certainly there will be changes to the “social media playing field”. However, will any resulting changes be valuable? Also, what will change, how much, and when will they impact the majority of us?
To start off with, I currently regard social media as a dysfunctional marketing channel. Considering all of the various types of social sites out there, probably the best “bang-for-the-buck” is video marketing (using your own video on-site, along with YouTube and Vimeo sharing). However, most small businesses don’t do well on social media sites like Facebook, and big companies currently treat this channel as a “toy” to play with (especially companies with strong brands). Yet, for small to medium-sized businesses (with whom we mainly work for) social media marketing provides limited traffic and conversions – especially for the amount of effort and money that must be invested to do it right. Meanwhile, these companies are struggling with a recession.
Do you remember the 90/9/1 rule for how people interact on blogs (and also FB style social media networks)? Well with this in mind, it sure hurts to be small; especially when you know that only about 1% of the people who are aware of your social media site (e.g., the “likes” you have on Facebook page for example) will actively participate on your site – by either commenting or taking advantage of any special offers provided.
We do hear stories from some big companies who apparently report success with social media, but what about smaller companies? Without solid data suggesting this channel holds great potential for them, it makes me suspicious about the entire channel. To date, our web analytics reports don’t indicate that FB model social media sites hold much promise for smaller B2B clients. With that being said, I recently found some startling research that concerns me even more. Let me share it with you.
In an excerpt of a recent report called, “The Role of Search and Social Media in the Purchase Pathway”, conducted by GroupM Search, they state,”…the leading companies of the social ecosystem, Facebook, Twitter and YouTube, appear to have a minimal role in the purchase pathway at present. Less than 1% of all converters engage with either brand-controlled social media from these properties or promoted/sponsored social ads in the 90 days prior to purchase. This is not to suggest that this form of social media does not have its place or potential as either a reach vehicle or engagement driver, but rather to acknowledge that in comparison, 16% of purchasers engage with category blogs.”
Whoa… That’s quite a finding!
With this ‘bomb” dropped, one has to wonder how any Google/Facebook “social media war” could be helpful to any company or to our economy? It surely appears dubious to me that any new “Google social entity” could ever bring something better to the table? Facebook, Twitter and Linkedin sure haven’t in regards to direct SALES, but for latter two, that’s not what they’re really all about anyway!
Google may be warring with Facebook because they don’t want to risk “not playing”. They also may be forcing the issue (since they have the money), and/or they have a grander plan (like tying their credit card purchasing feature into a store-front?). Still, there simply may not be any real staying power for selling from any type of social sales network? Yes, Google and Facebook may WANT to be the best in “social sales networking”, but so what? Surely, it appears not to be what CUSTOMERS WANT at the moment…
Based on the GroupM Search study, I believe more and more that “FB style social media” is quite limited as a sales channel for a majority of companies. Heck, the business model of Facebook is really nothing more than a glorified “sign-up captive blogging site”. Facebook’s only “brilliant strokes” were in their timing for signing-up so many users to basic accounts so quickly, then introducing “pages” (another stolen idea). Now they have a massive base with BIG ad revenue potential, but is it real potential? Regardless, the fact that they have “pages”, along with their massive closed ad network, probably are probably the biggest aspects to what is happening now – both companies are chasing the potential for advertising revenue.
So what happens after the war? Well, I believe social media will still exist. However, I also feel that neither company will end up “winning or losing” using a “Facebook social model”. Why? Well, the nature of social media networking has always been about discussing issues amongst friends. With this in mind, people hate having ads and “pages” shoved at them when all they really want to do is communicate with their friends! You need to “pull” not “push”! Doh….
Also, some people will likely leave FB for Google +, but how many, how fast, and does this even matter?
Frankly, I don’t think so. If Google and Facebook aren’t planning to add store-fronts, then this war is being waged based on misguided research and/or vision and the only likely outcome is parity.
So I say, “Hey Google and Facebook! Why don’t you two giants learn to play better together? Social media is likely not a viable marketing channel for all – and it sure would help the U.S. economy more if you could work on something really beneficial! Then, the rest of us could get back to helping OUR clients sell more goods and services through legitimate marketing channels.”
Your comments on this topic are surely welcome!