In its brief history, Social Media, as called New Media, has traditionally been viewed as a location to meet up new friends, reconnect with old friends and interact in an on line social environment. Simply speaking, social networks were “an awesome place to hang out” but held little applicability beyond that. There’s been no shortage of funding in Silicon Valley for firms launching new media platforms. With the emergence of sites like MySpace, Facebook and Twitter, there is no question that there’s value in the vast levels of home elevators people why these platforms have already been able to get; however, there has been no clear monetization strategy beyond bringing in advertising revenue. Arguments have already been risen as to the true value of the firms; some would suggest that their valuations are inflated and artificial, while other claim that the worth of these databases alone are enough to justify multi-billion dollar price tags.
The New Value of Social Media and The Social Media Firm
Now social media marketing has spawned a new value proposition, that will be the business applicability of the vast user-bases these social networks have created. Regardless that side of the valuation fence you sit on, it could be stated that social media marketing holds vast utility for businesses buying a new way to reach out to customers and engage in two-way communications. It’s never been done before from a normal marketing, advertising or public relations perspective, and has given rise to a new enterprize model: The Social Media Firm. This brings forth the argument of if The Social Media Firm is an excellent investment wcag 2.1 aa. Is The Social Media Firm a trend that may die out in the coming years, or is this a long-term, sustainable industry that may one-day drive obsolescence to the original types of advertising, public relations and marketing?
Given the state of the current economy, Venture Capital and angel funding sources have already been keeping their portfolio dollars close to their chest, reserving investment and then businesses with a significant operating history, solid revenue streams and unlimited growth potential. Does the Social Media Firm belong to this category? My answer is yes. Underneath line is: social media marketing is not going anywhere. Social media has become a staple of the lives of younger generations, and the fastest growing adopters of new media are people over the age of 30. Considering that the recognition of the business potential that social networks holds, large Fortune 500 firms are devoting an excellent portion of these marketing budgets to social networks and new media campaigns. As an example, Pepsi has devoted $20 Million of these marketing budget for a cultural media program called Pepsi refresh, and many large firms are beginning to follow along with suit. Obviously, the earning possibility of The New Media Firm is substantial.
Can it be sustainable?
As mentioned earlier, new media is not going anywhere. For probably the most part it has become a standard part of the Internet experience similar to email. The sites that are considered the gorillas in social media marketing may churn; however, there will always be something new to which these Internet-based communities will migrate. For example, the social media marketing migration to-date moved from MySpace to Facebook to Twitter, and the following major shift and/or addition to the massive online social sphere is likely just round the corner. The long-term sustainability of The Social Media Firm is largely dependent upon these companies’ability to identify and pre-empt the following big shift, and to produce effective types of leveraging both the old and new platforms for the sake of driving revenue, profitability, sales volume and identity to their clients.
Why Outsource to The Social Media Firm?
One question that may arise is: why would large companies hire a cultural media agency when they have the monetary resources to complete it in-house? The answer to this is the simple fact it is cheaper to outsource a new media campaign to a firm that’s a talented team already in place that is intimately knowledgeable about navigating the complex world of new media. In the same manner that large companies hire advertising agencies to design traditional media campaigns, this approach can and will be taken for new media. By hiring The New Media Firm companies can eliminate both the administrative burden that accompany hiring a multitude of new employees, as well as the educational curve that may inevitably be present when attempting to integrate those employees into their corporate culture. It’s more cost effective, in both monetary and administrative respects, to outsource these campaigns to professional teams that are fully adept at leveraging the potential of modern media, navigating the codes of conduct of the online communities and staying prior to the curve when it comes to identifying the exploiting the newest new media trends.
In summary, I really do believe that investment in The Social Media Firm holds great possibility of many funds; however, it’s imperative that after vetting these agencies, Venture Capitalists and Angels need to ensure that the business contains the correct personnel and management team to completely exploit this budding industry. The ditch is packed with one-man shops and so-called social media marketing experts that are no more than victims of the recession who are actually adept at Facebook or Twitter. It’s imperative that the architects of new media campaigns are knowledgeable about the intricate information on new media, and the vast variety of assets that exist online to for a company to take full benefit of the social media marketing world. Utilization of the lesser known social media marketing outlets such as for example Digg, BrightKite, hi5, Xanga and countless others could be the difference between a full-scale robust campaign that shows real results, and an ineffective and unorganized attempt at new media that wastes marketing dollars.
As a result of infancy of the industry, you can find few companies out there that truly understand how to unlock the worth of new media for business. The one’s that do will quickly rise to the top, and if sufficient due diligence is completed, these companies are ripe for investment. An ideal infusion of capital is likely the boost needed seriously to take these companies from a sustainable cash-flow business to another location industry giant with A-list clientele.