Social Media gaining budget control

Social Media gaining budget control

As mentioned in the article Liquor Giants Plug Into Social Media http://online.wsj.com/article/BT-CO-20120529-701922.htm, the use of laptops, tablets, and smartphones has increased the accessibility of information online. Users from all parts of the world are engaging and interacting with brands at an overwhelming speed, and companies must keep pace.

Massive liquor producers and distributors such as Diageo and Pernod Ricard (No. 1 and 2 spirits companies in the world – measured by revenue) are responding to this shift in trends by directing impressive figures away from traditional advertising towards social media.

By advertising on Facebook, Twitter, and YouTube, brands can better understand their consumers, their behaviors, moods, perceptions, needs, and triggers. It can verify or disprove target markets, enabling brands to adjust their marketing efforts and focus them on their true consumers.  

The benefits of gaining such a direct contact are such, that Diageo has increased its budget allocation to Social Media up to 20%. Even though traditional advertising through television and film still take the lead in the distribution of marketing budgets of companies, there is a rapid growth of expenditure in social media advertising.

Sites such as Facebook and Twitter allow marketers to have direct contact with consumers. Consumers are also able to share, comment, and gather information about brands or products. However, companies must be aware of the potential negative advertising that can rise from bad experiences. Undesirable comments or accusations are as rapidly spread as positive remarks.

Furthermore, on the consumer side, social media gives consumers the chance to identify with and even “own” brands or products. By searching for what they like or even sharing and commenting about their preferences gives them a sense of ownership and allows them to express their perceptions. It creates awareness and promotes the creation of membership to unique groups. By becoming a fan of a Facebook page or a Twitter follower, consumers gain knowledge and information that non-members are not entitled to receive.    

Companies that are not diving into the Social Media trend are losing an enormous opportunity to engage their consumers and create value through communication.