Why People Use Social Media

0 Comment(s) | Posted Feb 26, 2010 by Zach Clayton

Zach Clayton

Frequently I’m asked, “So why do people actually use social media?”

When I’m evangelizing the adoption of a social strategy to businesspeople, I usually dodge the question.  “It doesn’t matter why your customers use social media,” I say.  “What matters is that they spend increasing amounts of time using it.” 

I don’t want to get hung up on the “why” question!  The “why” varies: a grandmother may want to look at her family’s pictures; a parent may want to RSVP to an event; a student may want to remember what actually happened at last night’s party. 

In many ways, I’m right.  If an increasing share of your customers started to spend their weekends watching mimes perform at the local library – you’d be wise to figure out a way to participate.  In today’s cluttered environment, marketers need every channel to reach the consumer.  They cannot afford to be distant from the customer. 

But truth be told, the “why” does matter.  Why does someone watch a football game?  Why does someone listen to the evening news?  The consumer seeking entertainment is in a different frame of mind than the consumer seeking information.  The channel provides really important context.  And the social media context, particularly on Facebook, centers on social activities.  Join groups.  Make friends.  Stay connected. 

Unsurprisingly, the advertisements for dating sites (a highly social activity) convert well.  Games (entertainment) also do well.  But overall, the click thru rates are extremely low – averaging 4 in 10,000.  In a Harvard case discussion in which I recently observed, Prof. Misiek Piskorski so pithily summarized, “Think Marketing 101: the right product, the right customer, the right context.”  This is why Facebook struggles to monetize its advertising network.  The context is social, not commercial. 

So can a business ignore social networks if the context doesn’t seem conducive to the brand?  Hardly.  There is more search on Facebook now than Yahoo! and Bing combined.  Businesses –particularly consumer-facing brands – must show up.  While they may not make the cash register ring on a fan page, by participating in social networks, they can guide the conversation.  Here are some examples:

• Direct customer complaints to a dedicated email line to clear a Fan page of negative comments. 
• Point consumers who do want more information to a blog or forum that contains it. 
• Post pictures that humanize the company, and fit within the social context. 

The vast majority of all measured marketing spend is brand advertising (versus direct response).  Telling the right story across multiple channels builds loyalty.  So while social networks may lack commercial context, they still offer a channel that allows companies to position themselves.  Ignore that at your own peril.

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