WWW thanks Melvin Magadia for this guest post on social media in business – Authors can definitely take a cue from the ad specialties industry!

A recent study by the Advertising Specialty Institute (ASI) revealed the huge impact of social media networks in promoting a business.  The study, conducted on June 1, 2009, involved 1,364 companies in the United States and Canada. The ASI is the biggest network of companies in the advertising specialty industry with more than 26,000 member manufacturers and sellers. Here are the findings of the study entitled The Usage and Potential of Social Networking in the Promotional Products industry.

Findings of the study revealed that 53% of distributors and 48% of suppliers said that they will be spending more time on social networking in the next couple of years. Although there is no consensus on which is the most relevant site today, almost 90% believe that social networking is already or will be an effective medium for promoting their business.

Linked-in, an online site for professionals, is utilized by 54% of ASI’s distributor members and 46% of suppliers who took part in the survey. From the 54%, an overwhelming majority (93% of distributors and 85% of suppliers) use it for their business. Twenty five percent of the distributors say that Linked-in is the most relevant social network for the future.

At the moment, the survey revealed that Facebook has made the biggest impact in the industry, accounting for 59% and 62% of distributors and suppliers. Among those who have signed up with Facebook, 65% and 62% of distributors use it for personal reasons. Larry Basinait, who serves as the Executive Director of Research Services of ASI, said that their survey yielded fascinating results. Acknowledging the importance of social networking to their business, the study revealed that 47% of distributors and 43% of suppliers are trying to find ways to maximize social media for their marketing efforts.

A similar study conducted by the Altimeter Group revealed that most businesses utilize social media for various business objectives, such as boosting their sales. Tom Funk explains in  “Social Media Playbook for Business: Reaching Your Online Community with Twitter, Facebook, LinkedIn, and More” that social media provides an opportunity for companies to build up their relationship with their customers. Businesses use social media to provide information about their brand. As a result, they could likely get positive word-of-mouth.

Funk reveals that social media can help increase customer retention. Sixty seven percent of customers who use Twitter who follow a brand will most likely buy the products. This is a result of the company’s conveying of brand values which strengthens the relationship between the company and its customers thereby enhancing customer loyalty.

Social media can also help companies attract new customers by conveying their message on channels like Twitter and Facebook. In “Listen First: Turning Social Media Conversations into Business Advantage,” Stephen Rappaport claims that social media provides a medium for exploring the culture, views, and lifestyles that affects consumer behavior. Social networking sites can provide a profile of a target market. By posting on Facebook, businesses can directly promote their products to the customer.

Funk reveals that 8 out of 10 Fortune 100 companies are active in social media networking. The use of these social networking sites has allowed competitors to gain an advantage. For example, the posts of McDonalds concerning future franchises have been used by competitors such as Burger King in the selection of franchise locations. As a result, Burger King will be able to get substantial reduction in their market research expenses.

Melvin Magadia is a writer and blogger for a personalized items company selling promotional mouse pads. He writes helpful guides about a wide range of topics but concentrates most on business, technology and travel-related posts.

Sources:
ASI Study Gauges Usage and Potential of Social Marketing in the Promotional Products Industry
The High Level-Business Impact of Social Media