A new study detailing the likelihood of referrals and purchases from Facebook fans and Twitter followers has revealed, perhaps unsurprisingly so, that fans and followers are a brand’s best friends.  The study explains that 60% of Facebook fans and a whopping 79% of Twitter followers are more likely to recommend a brand or brands after becoming a fan or follower.  Furthermore 51% of Facebook fans and 67% of Twitter followers are more likely to purchase products or services offered by a brand after becoming a fan or follower.

New meaning to “brand loyalty”

Skeptics of the lasting impact or advantage of a brand maintaining its presence on Facebook or Twitter may insert their feet into their mouths now.  The simple act of clicking “become a fan” or “follow” is likely not the sole reason these brand loyalists are recommending or purchasing from a brand.  Still, the regular interaction with and updates from their brand of choice remain influential in their decisions to recommend or purchase.  In some ways, a person’s news feed is the ultimate location to stage a marketing campaign, as updates are mixed between posts from a user’s friends, subliminally asserting that this brand itself is a friend. 

The end of the email era?

If critics still need convincing, they need only look at the frequency with which Facebook users are logging onto the social network.  The raw numbers of daily log-ins were detailed in a previous post, but they, nonetheless, indicate that almost half of Facebook’s user-verse (universe reference, anyone?) logs in each day, most times more than once, ensuring that an update or promotion is not left unnoticed.  Furthermore, a recent article in the Wall Street Journal announced the “End of the Email Era,” positing Facebook messages had replaced emails, citing a study by Prompt Communications.  In the study, 96% of respondents claimed to use Facebook messages as a means of communication, with only 91% of respondents admitting the same for email.

Just like video killed the radio star, Facebook messages have killed the email.   Armed with the knowledge that radio remains a viable means of mass communication, we know that death is not quite as final as the Buggles suggested.  Nonetheless, as medium replaces medium, the broad encompassing tool of email has been edged out in sheer usage by its cousin, the Facebook message.  The question remains over the qualitative differences between these media, as almost certainly deeper conversations and more information can be exchanged via email than Facebook message.  That being said, it is becoming increasingly clear, given the frequency with which the social network is utilized by everyday people and the inherent loyalty of fans and followers, that social networks are and will remain a crucial arena for marketing campaigns.

The techies and gadget enthusiasts the world over waited with bated breath for Steve Job’s State of the Union address to shareholders last week.  Not because he offered any solutions for the growing deficit, the wars in the Middle East, or health care reform.  But unlike President Obama’s competing speech, Jobs delivered a Holy Grail of sorts in the form of the iPad.

Technically speaking, the iPad is an iTouch that has been drawn and stretched 7Xs larger.  Resembling more a tablet than a hand-held device, the iPad retains the same web-surfing capabilities and the space to store songs, podcasts, and videos of its ancestors.  The expansion of the screen however adds the option of reading texts and e-books loaded onto the device, the very feature that casts Amazon’s Kindle as hell bound, since they’ll soon begin open competition for the same consumers.

So if it is the day of reckoning, who’s headed where?

The introduction of the iPad begs the question of who exactly will Jobs be saving?  Long in need of a savior in the Internet age, newspapers and magazines have been quick to predict massive overhaul of their operating procedures and u-turns in their revenue graphs.  News corporations dream of potential readers – and in light of several major papers beginning to charge for their service, subscribers – landing on their website after seeing a tweet or post on Twitter or Facebook.

But this gets to the heart of the matter – as the iPad stands in between its smart phone and netbook cousins, it undoubtedly will be only positive for social networking sites.  Apple’s newest product couples a larger screen than the iPhone with more portability than laptops.  This will make it easier to read on-screen material  ranging from e-books to  news feeds or tweeted links on Facebook and Twitter.  The fact that the iPad is less cumbersome will encourage owners to check-in on these networks more frequently than on their netbooks.   The result: people will be spending more time, more often on social networking sites.  Beyond pop-up ads and mandatory videos, social media networks promise to be a major player in the future of effective marketing, especially with the advent of the iPad.

At the start of the new decade, many are questioning what lies ahead for social media networking sites.  Twitter remains the target of skeptics who point to stagnant membership and mock the micro-blogging mecca. Simultaneously, tweeters and commentators have come to the site’s defense, alleging Twitter is here to stay.

Skeptics point to mediocre 2009 in numbers

While the latest social media network reported a small bump in membership in December, its end of the year numbers were a staggering 24% less than June 2009.  Ironically, while Twitter was featured more and more frequently in cable news broadcasts – and stood at the center of the Iran election coverage in June – the network hemorrhaged members.  Twitter’s growth problem has thus become a billion dollar question: how can the social network grow? Some analysts are pointing to the immeasurability of new Twitter members, as an increasing proportion of members are tweeting from mobile devices and via apps, which were not captured in the statistics.  Others claim Twitter has not yet reached a critical mass, like Facebook already has, encouraging potential members to join to keep track of everyone else they know.

Twitter makes sharing information simple

Yet, Twitter remains extremely popular and has been put to great use recently in light of the earthquake in Haiti, as tweeters are sharing thoughts, needs, websites for charity, and prayers through the social network.  New York Times media reporter, David Carr, remains optimistic about the future of Twitter.  In his article titled “Why Twitter Will Endure,” Carr argues that Twitter allows for the consumption of a massive array of information.  Yes, people tweet about their choice of cereal, but they are also sharing news articles, videos, blogs, and discussion boards where responses are not limited to 140 characters or less. As Steven Johnson, another journalist and technology commentator for TIME, observes, “the history of the Internet suggests that there have been cool Web sites that go in and out of fashion and then there have been open standards that become plumbing. Twitter is looking more and more like plumbing, and plumbing is eternal.”

In case you didn’t know, we’re in tough economic times.  These economic conditions have drastically cut budgets across the nation and world, leaving meager allowances for marketing and advertising in its wake.

Nonetheless, expectations for 2010 remain optimistic.  In a new study released yesterday, StrongMail reveals nine out of ten business executives plan to maintain or increase their marketing budgets.  Execs aren’t thinking conventionally for the new decade either, instead the survey’s respondents indicated they were open to marketing strategies that utilize the Internet and maximize their dollar.  Next year, 69 and 59 percent of business executives anticipate increasing their email and social media marketing, respectively. Another 42 percent claimed they expect to spend more on search engine initiatives, such as SEO and PPC.  The survey’s results indicate a migration to internet marketing tactics, as advertising and direct mailing initiatives are expected by less than 30 percent of execs.

Furthermore, the study showed a desire among business executives to combine the tested and proven tactics of emailing potential customers with social media.  Execs did not, however, demonstrate uniform confidence about how they would go about implementing such strategies in the upcoming year.  Instead, one out of five executives claimed they had no idea where to begin.  With more businesses seeking to establish an online presence in hopes of finding cheaper alternatives to conventional advertising, it is certain that social media marketing and search engine initiatives will play integral roles in the year 2010.

Rodney Bradford might be the only one pleased with Facebook these days.  A perfectly timed status update from his father’s house in Harlem –  “On the phone with this fat chick…Where my IHOP?” — saved the 19 year old from prison time as his update served as his alibi for an armed robbery 12 miles away in Brooklyn.  After the DA subpoenaed Facebook records which confirmed the update was submitted from Harlem, the case was dismissed leaving Bradford a free man and demonstrating the pervasiveness of social networking sites.

Bradford’s vindication, while sensational, does not mark the first time social networking sites have been used in the courtroom or by the government.  In fact, this week consumer watchdog group Electronic Frontier Foundation (EFF) filed suit against multiple government agencies – including, but not limited to the CIA, DoD, FBI, and DEA – alleging unlawful use of social networking sites to investigate an array of crimes ranging from underage drinking to the coordination of G-20 summit protestors.

This filing follows a request for information under the Freedom of Information Act (FOIA) that was not met by multiple agencies.  The government scored a victory on the shoulders of Facebook in the case of Maxi Sopo, who was indicted for bank fraud after he failed to resist the temptation to brag about “living easy” in Cancun following the $200,000 heist.  Sopo’s downfall began with his acceptance of a friend request from a former Justice Department official.

The increased usage of social networking sites coupled with heavy government involvement, has led some to question whether Facebook and Twitter will become the new arenas for wiretap initiatives.  If so, the debate promises to be as heated as conventional wiretaps, with even the EFF acknowledging that information obtained from social networking sites is often for commendable reasons—where evidence of bank fraud is found, there too can an alibi be found.  The EFF points to a need for users to comprehend the extent of privacy rules and procedures of any social networking site in the face of government requests.

With forthcoming changes to Facebook’s privacy rules and settings, as alluded to in founder Mark Zuckerberg’s open letter to the Facebook community released earlier this week, the question of government usage of social networking sites promises to remain present and contested.

From Britney Spears, to Oprah; from Sarah Palin, to Ashton, celebs and politicians alike are employing social media as a means of online reputation management.  Whether they want to promote their books or shows, refute paparazzi and journalists or simply stay in the spotlight doesn’t matter- it’s all different means to the same end.

Social media has become a great way for people to get out their message with a large reach and a low cost.  Recently, Sarah Palin has been making waves on Facebook to promote the launch of her new book “Going Rogue: An American Life.”  She used to be an avid tweeter but decided to cash in the 140 character microblogs for Facebook notes.  Now, she regularly writes back to readers and journalists making false accusations about her memoir and suggests that AP writers engage themselves in something more newsworthy than ripping apart a book.  See a recent Facebook note of her’s below:

Sarah Palin's Facebook Note

This is only one of many and the others were definitely more aggressive but I think this gets across the same message in a brief manner.  Clearly, Palin isn’t afraid to be frank and candid, which was shown to the world on her recent Oprah appearance as well.  Oprah, who is also heavily engaged in social media, made the interview a trending topic on Twitter and posted a podcast of of some of the clips.  While the video claims, “There’s nothing we didn’t talk about!,” much of the interview has not been released to the public.  But, Oprah does occasionally give her Twitter following some proprietary information:  On November 20th, when she announced the end of her show in September 2011, she first informed her fellow tweeters.  Before the episode, she tweeted, “Big day…. tune in my tweet friends.”

Rach and Tey prior to break up

Oprah isn’t the only public figure using Twitter to relay big news.  Rachel Zoe and lead employee, Taylor Jacobson, publicly broke up on Twitter only weeks ago.  They had been working side by side for the last four years styling celebrities all over the world on the show the Rachel Zoe Project.  On November 6th, Taylor tweeted: “Today is an end of an era and the beginning of a new professional chapter.  Looking forward to what the future brings…!!”  The media picked up on this immediately and their split soon became common public news. But, sources are still not sure who broke up with who….  What do you think?  Let us know what gossip you’ve been hearing around the globe.

Outbound marketing is just not as effective anymore.  Outbound marketing for companies could be the use of traditional mass media, making cold calls, or going to trade shows.  These activities are active methods “selling” products and services through finding and approaching potential customers.  Tired of cold calling?  Try investing more on inbound marketing and let the business come to you!

Inbound marketing involves attracting new customers and letting them find you because you present your brand as a credible and trustworthy source.  Consumers or companies seeking products and services that you  might be offering are looking online and doing research through Google searches, reading blogs, and even reviewing content on social media sites.  Instead of putting your brand out there to people or companies used to quickly tuning out mass media, why not just be “found” by your target customer when they are looking?

Inbound marketing through search engine optimization simply means that your site is going to be well optimized for keywords most important to growing your business.  Without SEO, your company’s website will never be found in the natural search results and therefore lose market share to competitors who are in fact being “found” by your potential customers. 

Inbound marketing with blogs and social media involves developing great content.  This will in turn drastically improve your SEO efforts.  Social media is of course about more than content but is driven by sharing valuable information with your audience.  The information on your blog and social media platforms should be compelling and offer your audience a chance to quickly learn something of value.

Most companies these days are still spending about 90% of their time and energy on outbound marketing and only 10% on inbound methods.  Once a company truly embraces the theory and strategy behind inbound marketing they generally improve the inflow of new business leads.  They quality of these inquiries is usually better too. 

In conclusion, if your company wants business to come to you rather than having to chase down “leads”, then pursue these strategies:

• Position your company and people within your company as industry experts
• Develop great content for your website and blogs (i.e. articles, white papers, blogs, videos, etc.)
• Distribute your content to social media sites like Facebook, other blogs, Twitter, YouTube, etc.
• Forget the “sales pitch” and let new business come to you

With 1.9 million unique visitors per month, you can bet that celebrities all over are jumping on the Twitter trail too.  On an average day, users can expect to find tweets from Britney Spears, Lance Armstrong, Barack Obama, Ashton Kutcher, Stephen Colbert, Shaquille O’Neal and even, MC Hammer.  But the wide array of celebrities on Twitter really extends beyond this.  Some celebs ahead of the curve have already logged on to Twitter, managed their accounts for a while and subsequently deactivated.

So what would drive a celebrity to run away from the free publicity and fame?  Isn’t there always more time to be in the spotlight?  Well, not according to famous teen star, Miley Cyrus.  She claimed that her Twitter account began invading her privacy and putting her personal affairs in public view too frequently—probably right around the time she boasted a following of 2 million.  So she decided to conclude her Twitter affair and kissed it goodbye with a YouTube rap video about how she “stopped livin’ for moments and started livin’ for people.”  You should really check it out if you haven’t seen it— it’s highly entertaining, not to mention perplexing as she is trying to run from the public eye by creating a new viral video.  How ironic.  She should probably stick to acting, but that’s beside the point…

Regardless of Miley, many other celebrities have managed to run successful campaigns on Twitter.  They’ve used them to promote themselves, their songs and shows, grow a fan base, relate to their audience and humanize themselves.  Twitter can actually be a really successful tool for celebrities in increasing their personal brand awareness, just like how companies and businesses use the microblog for viral marketing.

Ashton Kutcher is a great example of this phenomenon.  I’m sure everyone remembers his victory over CNN?  Earlier this year, they we racing to see who could reach 1 million followers first.  He tweeted incessantly and offered a free Guitar Hero to his millionth follower.  Somehow he single-handedly conquered the news super station.  He currently claims the most followers out of any other celebrity on Twitter with 3.9 million fans reading his microblog on a regular basis.  He tweets about 10 times a day and usually adds in a link, either to a website or other profile.  He often interacts with his followers—recently, he replied to a fan’s tweet about his last chemo session with “live strong, Drew.”  Must be why he has so many followers!

However, Ashton Kutcher is not the only celeb using Twitter to show his sensitive side—Tila Tequila has been consistently blasting out posts on her profile page to aid her favorite charity, The Keep a Breast Foundation.  She recently collaborated with artist Randy Janson to create a shiny, red, sculpted version of her breasts to be auctioned off on Ebay.  Tila is a heavy Tweeter, with an average of 143 posts per day.  She’s been publicizing and promotion the auction from her Twitter account, which has apparently created a lot of hype.  There’s only 8 days and 10 hours left and the bidding has already hit $45,000, so if you’re interested, I’d bid now!

So as you can see, celebrities are not shy when it comes to Twitter.  The most successful celebs are the ones with the highest tweet frequency and most user engagement.  But, keep in mind, just because we’re talking about celebrities here doesn’t mean they are all tweeting with the same intentions.  Several news sources in 2009 have conjectured that many stars employ their Twitter profiles as a way of disseminating personal information before the paparazzi can expose it.  Some people may see this as lessening their personal privacy but celebs like Britney Spears, Lance Armstrong and Shaquille O’Neal believe that this is actually a form of privacy control because they can control the accuracy of the information they release.  Although it may deplete the dollar signs of the paparazzi machine, it seems like a pretty good plan to me.

For more information on celebrity profiles, check out Celebrity Tweet.

Last Thursday, on 10/15, Internet Marketing Inc.’s New York City office hosted a “Cocktails and Conversations” event for industry insiders, clients and friends.  More than 60 attendees enjoyed wine, hors d’oeuvres, and a quirky presentation by seasoned sales expert, Lisbeth Calandrino, who recently released a new book called “Red Hot Customer Service.”  The event was scheduled to end around 8 p.m., but the last slew of guests didn’t actually leave until after 10 p.m.  If that isn’t a metric of a success, I’m not sure what is!

For those who missed out, check out our video presentation below AND stayed tuned in for next time!

Many thanks to our fabulous speaker and generous sponsor, Select Office Suites.

For more information, please view Lisbeth Calandrino’s blog.

Last week, the FTC (Federal Trade Commission) announced a new set of rules to govern bloggers with a connection to any company selling a product they are writing about. So, how far will the government go?  Right now, it’s unclear, but the guidelines could extend to regulate posts people make on Facebook and other social networking sites.

So what does this mean for our 1st amendment rights?
•    The government will have the ability to further dictate the parameters of individual communication via the Internet.
•    Several new questions arise about what exactly constitutes blogola and disclosure. (For those unblog-savvy types, “blogola” refers to posts made by bloggers who have been given some sort of incentive to post about a product.)  Should the disclosure be written in the post or can it be in the bloggers “about me” page? Is blogola really that different than traditional forms of advertisement and promotion?

However, here at IMI, we do believe that there are two sides to every story:

•    Libel is illegal. Defamation is illegal. Do they still happen frequently?  Yes.  Do they happen on the Web?  Way too often, but it’s not rigorously regulated online at the moment.  These new regulations will hold people responsible for their blog posts, which is a logical extension of current laws surrounding these concepts.
•    Has anyone ever posted anything nasty about you or someone you know on ripoffreport.com, juicycampus.com, etc.?  These sites continue to pop up every day, constantly grow in usage and exposure, and have significantly injured the reputations and careers of many.

So, what’s fair?  What do YOU think?  We’re interested, let us know…