Last year, Forrester Research’s Jeremiah Owyang predicted that 2008 would be the first time that we’d see companies begin to set aside budgets specifically for social media initiatives. Looks like Jeremiah was right, as three recent news stories seem to suggest that corporations are moving quickly into the social media waters.
First, Ford last month tabbed social media guru (and fellow Daily Fix writer) Scott Monty to head up its social media efforts. Scott will be over a 5-person social media team for Ford Motor Company.
Second, Dell recently announced that it was giving its employees unfettered access to a wide array of social media sites and social tools.
Dell’s Chief Blogger, Lionel Menchaca, explains the company’s rationale for the move:
This latest development is an evolution of our social media strategy, and I think it’s a good thing. In a lot of ways, this reminds me of the early days of the Internet. The objections for not opening up access to social media sites borrows a popular argument from back then: doing so will be a drain on employee productivity. So, why did we do it? Because more of our global customer base is having conversations on these sites. Beyond that, many customers reach out to Dell for support at these sites. Seems clear that these trends will continue.
And finally, on Monday, Geoff Livingston announced that his Washington D.C.-based Livingston Communications was being acquired by Toronto’s Social Media Group. The move makes SMG the largest indie SM marketing firm in North America, with Livingston adding that “it’s clear that companies are desperate for qualified social media marketing and communications services creating an immediate opportunity to serve large enterprises.”(emphasis added).
I see a couple of trends here. Some companies are deciding it’s time to get serious about social media, and are creating social media management/director positions. While other companies are still outsourcing their social media initiatives to marketing/social media firms. And companies such as Dell that have been experimenting with and using social media for a while now, are seeing clear benefits and are actively embracing these tools on a company-wide basis.
I also think that the big advantage that companies like Dell have is that their entire culture is being changed by social media. Another company can swoop in and hire a ’social media expert’ to head up their new social media department, but will the rest of the company be behind these tools, or just a few people in upper management?
Either way, I think you’re going to see a lot more names on the move sooner rather than later.
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You would be surprised though how many companies still don’t understand it. I recently gave a teleconference to several companies on social media with what I thought was the bare bones of basic information and it seemed to be over their heads. I found that astonishing. But the fact that they wanted to learn is a step in the right direction…
Kudos to brands like Ford and Dell for moving forward into this platform.
I agree Shannon. I think 2 years ago, many companies simply dismissed social media as being a ‘fad’. Now, most of them are still pretty clueless about what’s happening, but at least they want to learn more, as you said.
I still remember when Dell was getting roasted a couple of years ago for their initial blogging efforts. But that now means that they have a couple of years of learning and improving under their belts. Which gives them a HUGE advantage over competitors that are still wondering if they need to start using these tools.
Great piece, as always, Mack. You can add one more company that’s jumping in… Ingersoll Rand has created a new position for the first time – Director of Web/New Media. Yes, that’s me, but I’m no stranger to new media, since I’ve been blogging and podcasting and Facebooking in my role at Kryptonite for the last few years. And now, as you know, Twitter, Plurk…etc.
Ingersoll Rand sees the benefit in social media, just hasn’t had a person in a position to help guide the different biz units until now. Guide I will, to the best of my ability, and off they’ll go – I know they will. They all see the benefit and are excited to get started.
Oh, but I’m jealous of Scott Monty at Ford for having a whole department for this. That’s great! Congrats to them.
I just recently relocated to Columbus to help lead Nationwide’s social media efforts. Definitely expecting to see more companies making the leap. Glad to be working for one of the early adopters.
http://www.smorty71.com/2008/07/i-am-joining-team-at-nationwide.html
This reinforces the need for organizations to work with either internal or outsourced specialists and have one senior staff (dept.) or consultant oversee and project manage all marketing tactics in a holistic way. I hope we don’t see a return to silos that don’t communicate with each other.
Elaine good point, I think that’s why you are seeing some companies moving toward outsourcing (Which is why firms like The Social Media Group are expanding, to meet the SM needs of corporate clients), and others like Ford and Nationwide (congrats Shawn!) are hiring existing SM experts to head up their efforts.
But I still think that how willing a company is to interally open communication and interaction with customers that are using social media, is hugely important.
Gave a presentation on LinkedIn to a group of CEOs just a few months ago. They had heard about it, but almost to a man (oops, there was one woman CEO there – and she used LinkedIn!) they dismissed it as unnecessary. In fact they wanted to avoid it because it might allow too much access to them. That’s just one example of their blind spot about social media. Seems that they have a ways to go to embrace Web 2.0’s potential for themselves OR their companies. Their loss (literally).
Deb has a valid point. In a paranoid world where “Big Brother” seems to be watching and listening, some people are concerned that there’s just too much access to information. Today, recruiters check the Internet to learn all they can about job candidates, especially at the senior level. People check out their dates; business people can check on potential suppliers, etc. etc.
If we express ourselves on blogs and social media sites, we’re open books to the world. I think it’s a balancing act between being authentic when participating in social media, and self-monitoring what we say and how.
Elaine I hear what you are saying about how much is too much to put out there. But on the other hand, if we are more open and honest and just ‘be ourselves’, I think it makes it MUCH easier for us to connect with others on blogs, Twitter, Plurk, etc. David Griner had a great post about this, saying that Twitter works so well for networking because it lets us connect as people, not job titles.
I think he’s right.
http://www.thesocialpath.com/2008/07/the-real-streng.html
This article and dialogue could not have come at a better time for me. At WL Gore (the makers of GORE-TEX fabrics) we are actively looking at social media, have dabbled a bit but need to go broader. Your inputs will be useful for our team as we gather buy in from key stakeholders within my organization.
I strongly agree with this article.
In Australia, I’ve seen sizable growth in firms taking up social media. But there’s a huge skill shortage out at the moment…
The agency I work for offers a range of Social Media services, but we are in the minority.
This sounds good. Have been evangelizing this mode of Outreach in India across Industry Segments.
With the sheer opening up of the economy, a whole gamut of categories have been opening up; brand owners and business owners have been seeking to leverage this medium to reach their audiences.
I have been involved in this exciting cusp stage of the opening up here.