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December 12, 2008

How B2B Marketers Can Monetize Social Media

If you've been trying to introduce social media and networking tools and create an online community centered around your company, products or services, there's a good chance that you've hit walls when it comes to explaining how exactly these new products can be monetized. While B2C has leveraged the power of social media and social networking with great success, B2B is still struggling to justify the investments required to develop, host, and manage social tools and communities on their websites.

In most companies, new product ideas are welcomed and products are developed when there is a clear path to ROI - if something isn't fiscally viable, it probably won't last long in many marketing departments. Since social media and networking is still relatively young, there isn't a vast repository of information that explains how social media usage can be measured, benchmarked, analyzed and monetized - especially in the realm of B2B.

This creates a catch-22 of sorts for many B2B marketers - all kinds of companies WANT to employ social media tactics in their marketing strategies, but no one has the cold, hard data proving that doing so will result in a positive ROI. Until someone takes the plunge (and reports on their findings) however, no one has the ammunition to prove the profitability of using social media as part of their marketing campaigns.

You can sense the impatience of some of the media industry's most influential players in this roundtable video produced by FOLIOMag. In this video, Creating Community media insiders discuss (and sometimes argue) why social media is so important, and how it can be monetized when partnered with existing lead generation efforts.




Some of the benefits of social media highlighted in the video include:

1. The ability to use social media to extend your content (by allowing users to create their own content, comment on existing content, and share your content via bookmarking/tagging tools), extend your reach (by breaking down your website's "walls" and connecting to users via widgits and sharing tools), and increase your site's stickiness (by giving users a reason to stick around and interact with your site's offerings).

2. The chance to give your customers what they want, all while gathering deeper information about your audience. This allows you to deliver content with greater relevance and selectively target users with the data they've openly provided.

3. The opportunity to grow your audience by attracting social-savvy users (and their friends), establishing deeper relationships with your users (by responding to their messages, comments and content), and moving away from the current "broadcast" method of communication (1-way communication from you to your users).

4. The competitive advantage of being able to deliver an increased level of depth, quantity, and quality with your leads based on the new kinds of information able to be gathered via the social tools.

5. The capability to reach new advertisers by offering social media as a product on its own merit, or as a part of an integrated marketing campaign.

If you're interested in learning more about how you can measure ROI and monetize social media as part of your overall marketing strategy, the resources below should help you get started.

Social Media ROI Resources
from Constructing Social

Online Community ROI: Models and Reporting - Research Study Posted
from Bill Johnston: Online Community Strategy

A Marketing Charts Study: Marketing Execs Must Realize and Learn to Use Power of Social Media

Frogloop's ROI Calculator: Is It Worth It? An ROI Calculator for Social Network Campaigns

The Online Marketing Blog post: Social Media Analysis and Tracking