Friday, May 29, 2009

Are Corporate Policies Decreasing the Pie of Social Networks' Ad Market?

How many people have found their employers block social network sites such as Facebook and MySpace? According to Barracuda Networks, a content security appliances company that protects organizations from the likes of email, the Internet and IM threats, approximately 50% of companies block MySpace, Facebook, or both. With MySpace and Facebook expected to generate $630 million and $230 million in U.S. advertising revenue in 2009, respectively, imagine how much ad spending would increase if all employees would be able to access social networks.

An employer’s position can be that social media sites reduce productivity and expose a company’s network to unnecessary threats (that’s at least what my former employer said). To expand this point, the employer could argue that there is no direct benefit to the firm for an employee to spend time on social network sites.

The opposite point of view could be that social networks are the wave of the future, and companies need to embrace, not deny, their evolution. In fact, a company can benefit from social networks. For instance, a friend of mine works at an up-and-coming clothing store that is promoting her company’s brand over Facebook. More companies should think of ways to promote their brands through social networks; they can use them to develop a fan base or even as an external communication channel. Additionally, social networks enable employees to cultivate relationships that may benefit the employer in the long run. Furthermore, social networks are one of the primary means of communication in this day and age. By blocking social networks, employers are effectively cutting off communication with friends and loved ones. In the end, employees that are satisfied at work are more productive. Period. As such, if employees feel passionately about accessing social network sites, employers should give in.

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