80% of brands are on FB, most aren't using it right

Reports out say that brands need a clearer focus when using social media if they really want results

Technology trends and news by Krystal Peak
June 20, 2012
Short URL: http://vator.tv/n/27ba

More companies are creating a Facebook presence, but they aren't necessarily engaging their audience they way that results in more revenue and brand awareness. Roughly eight out of every 10 US companies are now on Facebook, according to a recently survey released by InSites Consulting today.  

The poll picked out 1,222 managers in the U.S and Europe to see just what they are using social networking for and what results they are seeing. 

While 80% had taken their brand onto Facebook, just less than one half were using LinkedIn and Twitter, while only a third had created a YouTube presence. 

Other stats found through this survey included:

-Six out of 10 American companies listen to consumer conversations happening on social networks.

-Only 11% of companies using social networks incorporate that into their overall strategies.

-Companies already spending on social media plan to increase that spending. 

-Companies that aren’t currently spending have to plans to in the future.

-83% of the brands answer client questions and address complaints using social media. 

But this adoption of social media and communication doesn't necessarily mean that the companies are truly integrated yet. Many are using all of these moving parts but have not created a strategy or process to make everything work together. Nonetheless, there is a promising trend of companies more receptive to user comments and input. 

“Social media makes conversations between consumers very transparent," states Prof Steven Van Belleghem, partner at the research agency InSites Consulting. "Companies can quite easily discover what people are saying about their products and services. An increasingly growing group is strongly interested (and with good reason) in this real-time feedback from the market.” 

The survey showed that companies find it very important to be present on social network sites. However, this does not always mean their strategy in doing so is well thought-out. A mere 11% of the companies are integrating their social media approach into their overall corporate strategy while 17% are currently mid-integration. 

“A huge number of companies feel external pressure to be present on social media. Unfortunately this very often results in static corporate pages where nothing really happens. It too often leads to mere presence, not engagement with people. In doing so, companies create enthusiasm among their customers which in the end turns into disappointment,” Van Belleghem said in the survey results.  

It is more important to have a meaningful and complimentary presence on social media than to just exist there because, ultimately, brands are should have a bigger goal in mind than to just "be" online and until they identify what it is, they could be treading water for a while.

Other Facebook business

This survey on how companies are fairing on the social media side of marketing comes just as a report is released by Resolution Media and Kenshoo on Facebook ads.

While 80% of companies look to Facebook free fan pages as a way to get their name out, millions are measuring whether they should go the paid Facebook route and buy ads.

In the report released today, Kenshoo and Resolution Media foudn that the exposure rate over 65 billion Facebook ad impressions and 20 million Facebook ad clicks is headed in a promising direction. This new metric to measure engagement on Facebook – exposure rate – looks at unique impressions in the context of desired target audience actually reached.

The report found that the most effective ad type on Facebook is the sponsored story where someone in your friend circle has discussed a brand and the brand promotes it to be seen more promenantly in your feed.

The report also found that a well-created and run fan page is the best tool in marketing on Facebook and provides invaluable metrics about the people that use or like your products and services.

“Social media has quickly become one of the preferred channels for brands, and when done right, can foster meaningful relationships between brands and consumers in ways that were never before possible,” says Alan Osetek, president of Resolution Media, in a statement. “The purpose of this study was to define what ‘doing it right’ means in terms of measureable actions and outcomes, and giving marketers a model for demonstrating effectiveness.”

The report also found that bidding above the maximum CPC rate will drive up the exposure rate and drive doen the frequency of advertisment shown.

Sivan Metzger, general manager of Kenshoo Social explained in the report that “with new channels and ad formats come new tracking capabilities. And with new tracking capabilities come new data points. With new data points come new insights. And with new insights come new key performance indicators.”

Below is the full infographic provided in the latest report:

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