Recessions aren’t for sissies. In this economic downturn, as budgets get slashed and all eyes are focused on cost efficiency, gutsy marketers are recognizing the need to get more creative with their marketing efforts by embracing social media.
A recent Epsilon CMO Survey revealed that 63% of marketing executives surveyed see an increase in interactive/digital media spend while 59% report a decrease in traditional marketing spend. As marketers look to maximize their budget dollars, an increasing number are considering social media alternatives to reduce costs, increase agility and expand the channels of conversation to the right people.
Recently, Craig Howe, CEO of Rocket XL, a strategic social media agency, spoke with Marketing Matters about the role of social media in the current economic downturn and offers suggestions for how best to navigate the social media space.
Marketing Matters: What role is social media playing in this downturn economy?
Craig Howe: The current economic downturn is providing an amazing opportunity for social media. Savvy marketers are looking for the most effective vehicles to maximize their dollars. Social media allows them to hypertarget the most critical audiences for their product.
During an economic downturn, marketers look at their budget and question where they should make cuts. Should they cut online banners, email, PR? But social media can achieve all those objectives and allows you to dig deeper. For example, a blog post allows you to combine all the elements of traditional marcom campaigns.
MM: How would you characterize the state of social media today in terms of adoption and engagement?
Howe: From a philosophical standpoint, the space is highly coveted by marketers but it takes investment to really understand all the different elements of social media. 
It’s not just about Facebook or reaching bloggers. You really have to take the time to understand each of those elements. As a strategic social media agency, we educate our clients on different vehicles within the social media space. It’s important to understand how a Flickr campaign differs from one centered around blogs.
MM: How can clients measure success in the social media space?
Howe: The first step is to evaluate how social media is helping them hit their objectives. How are various social media elements helping them communicate their brand features? On the agency side, we bend over backwards to try and produce both qualitative and quantitative metrics to show clients how we’re setting and meeting objectives. Social media is a moving target so you constantly need to update your report card to evaluate how specific social media efforts are tracking to your objectives.
The goal is to track qualitative and quantitative impressions and expressions because currently there is no industry standard for an ROI metric for social media.
It’s also important to look at the specific objectives and features of a product. Visual products demand more visual social media components. But overall, the best metric is sales.
MM: What role are influencers playing in the success of social media campaigns today?
Howe: Influencers are feeling the pinch as much as everyone else. They’re more receptive to being able to experience the product and share their thoughts and opinions. In this tough economy, influencers want to check out a product and see what it’s like. They don’t have the discretionary dollars to go out and just buy it. Influencers are more receptive and appreciative than ever before.
Because of their growing numbers, influencers are more important to the social media campaign equation. When it comes to crafting messages for this important audience, the keyword is authenticity.
MM: What advice would you offer those interested in exploring the social media channel?
Howe: There are a number of “dos” if you want to explore social media. First, conduct an in-depth landscape analysis of how your product and brand is currently perceived in the social media space. Identify the negative voices and prepare to build on those positive perceptions. Getting a quick snapshot of how your product is perceived in social media can easily be done through a simple Google search.
Second, have a clear understanding of your objectives and parameters. Social media is an organic experience of building brand and awareness.
Third, partner with a specialist rather than a generalist. Trust a partner that truly understands the space and your niche within that space.
Fourth, consider social media as its own medium and marketing vehicle. Too often, social media is addressed as an afterthought as a campaign.
Lastly, maximize your dollars by tapping into a number of social media components. We’ll continue to see the growth and fragmentation of social media. The dominant Facebook groups, YouTube and StumbleUpon are all equally powerful as marcom tools. Investing all your dollars in one site will not be as effective as tapping into all those channels.
MM: Can you provide any examples of companies that are getting it right when it comes to social media?
Howe: In general, one trend we’re seeing is the growing collective power of “Mommy bloggers.” They have really become savvy in their approach to marketing and understand their influence and value. They’ve become adopters and influencers in the space themselves and are a lot more proactive in involving agencies and brands in making them more influential. Companies like Pampers and Luvs have effectively taken advantage of this growing audience.
Sony Electronics is another company that has effectively taken advantage of this trend in the social media space. Prior to its initial campaign for the Sony Reader, a digital book device, the female voice only represented 15%. After implementing a social media strategy targeting this female segment, that percentage jumped to 30%. Mommy bloggers are hungry for new experiences and in trying new things. In that way, this campaign proved successful for Sony on a number of levels.
MM: What component of social media should marketers be targeting in the short term?
Howe: In the social media space, you need to consistently evaluate what’s next, what’s dying and where you should be targeting your resources. When your social media campaign is structured around blogger outreach, that’s a red flag. It’s not that blogs are dead; the space is merely maturing. But Digg and YouTube and Flickr and Facebook are also all viable channels. A successful social media campaign depends upon consistent messaging throughout a variety of channels.
You need to keep up-to-date on what’s new in the social media space. You need to keep tabs on what your influencers are using, what blogs they are visiting and what new channel is gaining traction. Rather than using software to keep tabs on the space, our agency uses a human research team that tracks more than 3,000 influencers across diverse industries. Because the social media space is constantly changing, the medium may shift but your objectives and messaging should remain consistent.
MM: What will social media look like five years from now?
Howe: Right now, social media is regarded as an afterthought in a campaign. Many of today’s social media clients are in the space because they “should” be there. But in the near future, social media will become the lead for the overall campaign. In today’s environment, video gaming and entertainment clients are leading the way. Once the entertainment model has been proven, it will move to other categories and become the norm. At that point, the model of building social media campaigns will occur long before a product is launched.
The future of social media will be all about user customization. With so many new tools being developed, users will start to segment their own lives. Your personal LinkedIN page will look completely different than your Facebook page. You’ll have profiles on several different networks and portability of personal information will become more important.
Is the economic downturn a good thing for social media? Post your comments here.