Part 6 in a series introducing my new book, The End of Business as Usual…this is not content from the book, this series serves as its prequel.
The state of social media is no insignificant affair. Nor is it a conversation relegated to a niche contingent of experts and gurus. Social media is pervasive and it is transforming how people find and share information and how they connect and collaborate with one another. I say that as if I’m removed from the media and cultural (r)evolution that is digital socioeconomics. But in reality, I’m part of it just like everyone else. You and I both know however, that’ I’m not saying anything you don’t already know.
Social media is clearly becoming the new normal. For the last several years, simply adding the word “social” in front of anything and everything from media and gaming to commerce and CRM to business and consumerism, it’s clear that we are finally approaching the end of the hype curve to start making sense of what it all means and just how far it applies to the future of business and media.
But as social media becomes part of our cultural fabric and even as we witness businesses, governments, sports teams, and almost every organization socialize communication efforts today, much of what we see is merely the beginning of something that will one day become something far more important than the medium itself. Indeed, social media is affecting behavior and nothing is more important than the ability to influence decisions and ultimately behavior. The state of social media is not necessarily as much about which network is #winning as much as it is about how people are spending their time, interacting and connecting with one another, and what happens as a result.
To demonstrate this point, let’s review the profound findings from the recently released Nielsen Social Media Report.
1) Skeptics will now be recognized as laggards as they now officially stand in the way of progress. According to Nielsen, and well, reality, social media isn’t a fad. The report opens with a key finding that social networks and blogs dominate how Americans spend their time online, which accounts for nearly 25% of their total time spent on the Internet.
2) Four out of five active internet users aka everyday people visit social networks.
3) Looking beyond the U.S., in 10 major global markets, social networks and blogs reach over 75% of active Internet users.
4) 60 percent of people who use three or more digital means of research for product purchases learned about a specific brand or retailer from a social networking site. And, 48% of these consumers responded to a retailer’s offer posted on Facebook or Twitter.
5) 70 percent of active online adult social networkers shop online.
6) 53 percent of active adult social networkers follow a brand.
7) Tumblr nearly tripled its audience from just one year ago.
As a brand, Nielsen’s report gives us both validation and insight into the importance of social media in the business mix. But just who’s driving the growth? Understanding the demographics and also psychographics of social media users will help us more effectively connect our brand story to the needs and behavior of the social consumer. Nielsen reminds us that women make up the majority of visitors to social networks and blogs. The 18-34 segment boasts the highest concentration of active visitors among all age groups. Americans aged 35-49 are avid visitors as well as they are 4% more likely than average consumers to visit social networks and blogs than they do any other site. We’ve also learned in previous reports that Boomers are also flocking to social networks, with the adoption of social networks such as Facebook by the over 50 contingent growing by over 88%.
As I’ve long maintained, Facebook is the homepage for the social Web of the most progressive businesses. According to Pingdom, with 800 million users, Facebook is now the size of the entire Internet in 2004. And, as Nielsen shows us, at 53.5%, Facebook accounts for the majority of total time spent online.
Of course, social media is only part of the story. How consumers access the Internet and social networks alike counts for everything. As you can see, 37% of people access social networks from their mobile phone. Social networks aside, if your business isn’t creating dedicated online experiences for mobile devices, you’re missing a tremendous opportunity to connect with consumers.
Consumer activity is focused squarely on social networking in addition to accessing music, Web browsing, and GPS functionality. Engagement through content and 1:1 interaction is critical in earning relevance and attention in a new era of consumerism.
Social networking apps are up a whopping 30% from third quarter 2010. At the top of the list is Facebook with mobile usage dominated by 25-34 year-olds at 29% followed equally by those 18-24 and 35-44 at 20%. Access to social networks from mobile phones is up significantly among older demographics from just last year. Mobile usage among those over 55 jumped by 109% and those 35-54 grew by 68%.
Those active within social networks wield far greater influence offline than their more traditional counterparts. While we understand that consumers trust the recommendations of their peers, research by NM Incite reveals that 60% of social media users review products and services and is also their preferred source for information about the products they too consider. As you can see above, their effects are also felt offline. 33% are more likely to share their opinion on TV programs. 75% are more likely to be heavy spenders on music. Almost 50% are likely to spend significantly on clothing, shoes, and accessories.
Over the years, I’ve researched the gap that exists between what businesses think consumers want in social networks and what it is that they really want or expect. As you can imagine, there’s a significant delta between each and here, Nielsen delved a bit deeper to share insights into specific brand-related behavior by consumers in social networks. Much of their time is spent in pre-commerce phase of decision making, reading consumer feedback and learning about products. At the point of the decision, they seek to obtain coupons and promotions. Post commerce, they’re actively posting positive or negative feedback, thus influencing the decisions of others.
The dominance of social networking isn’t relegated to the United States, it is indeed a global phenomenon…and a way of digital life. Nielsen discovered that social networks and blogs are the top online destination accounting for the majority of time spent online, reaching at least 60% of active Internet users in the following countries:
The End of Social Media 1.0
Social media is approaching a much needed maturity cycle where each word “social” and “Media” will no longer unite as an oxymoron, but instead as a true statement in how businesses and customers connect online. As a disruptor to everyday business, social media is forcing us to rethink everything. It is in many ways just like starting over. We are relearning and questioning everything and that’s the way it’s supposed to be. From creative and messaging to execution and measurement to service and loyalty, we now must look at applying more sophisticated and meaningful programs that combine social and media into a powerful form of engagement and leadership.
We will one day soon realize the day when “social” becomes part of the everyday construct in how people talk to one another and how we collaborate to solve for whatever brings us together. In the mean time, socializing media is only half as important as improving relationships and experiences within digital landscapes.
What do you think is different about today…what makes this the end of business as usual?
Order The End of Business as Usual today…
Part 1 – Digital Darwinism, Who’s Next
Part 2 – Social Media’s Impending Flood of Customer Unlikes and Unfollows
Part 3 – Social Media Customer Service is a Failure!
Part 4 – I think we need some time apart, it’s not me, it’s you
Part 5 – We are the 5th P: People