The “Social Media Revolution” and Business

In light of our discussions about the power of Twitter and other social media outlets to bring about some sort of change, I’d like to share a video that sums up pretty neatly the reach and strength that social media really does have. No matter your views on the effects of social media as positive or negative, the facts and ideas in this video are pretty undeniable. It’s called Social Media Revolution (I promise it’s a fun watch – give it a look). Based on the book “Socialnomics” by Eric Qualman, SMR is targeted at companies, depicting the impact social media can have on a brand. This video happens to hit on a lot of the topics we’ve discussed in class, specifically the power of peer recommendation via social media that Brian Morrissey discusses in “The Power of Many.”

The doesn't get into this topic for a bit, but it eventually points out, among A LOT of other things, that user-generated commentary on products and services carry a lot of weight in the Internet world. Consider the following:

• 25% of search results for the world’s top 20 largest brands are links to user-generated content

• 34% of bloggers post opinions about products and brands

• 78% of consumers trust peer recommendations

• 14% of consumers trust advertisements

The video states that people care more about how their social circles rate a product than how reviews and ratings found on Google do. This concept perfectly supports Morrissey’s argument that peer recommendations often weigh more than commercial messages. SMR also stresses that successful companies should use social media to listen to their consumers before they try to sell to them. Social media is making companies more aware of their consumers and what these people want or need. The New York Times’ Eilene Zimmerman agrees in "Turning Your Company Into a Social Animal."

Social media can be a powerful tool for listening to customers and building a reputation for responsive service, says David Nour, chief executive of the Nour Group, a business development consultancy in Atlanta, and author author of “Relationship Economics.” “You get real-time feedback and can engage with customers quickly to answer questions or help them solve problems.”

As the video states: “Social media isn’t a fad, it’s a fundamental shift in the way we communicate.” Business has taken note.