Following my last post, a female friend of mine sent me an interesting link to a new report on digital marketing.
In the report released by market research company, Gartner Inc. late last year, the analyst Adam Sarner estimated that more than 75% of the Fortune 1000 enterprises had employed social networks as a tool of marketing and customer-relationship management. Click the Smm panel for youku likes.
However, Mr Sarner also suggested that half of the ongoing social media marketing and customer-relationship activities will turn to failure. He highlighted Facebook as an example, saying it is uneasy for enterprises to implement marketing strategies in social networks which are a tool to promote relationship and friendship rather than a tool for enterprises to get more money.
Using this report as evidence, my friend implied that I might have been to quick to embrace Social Media Marketing as a digital marketing channel. So if 51.com, Xiaonei.com can be regarded as the Chinese version of Facebook and Tudou, Youku.com are the YouTube equivalent in China, the suggestion by my friend is the future of social media marketing in this land is questionable. I fair assurance but one I don’t support.
The Big Questions- What will be the social media marketing role in tomorrows’ China?
The report made me reflect more on the question above but did not make me change my mind (at least, the other 50% has been proved to be successful). Though it may take times, I believe social media marketing will have a bright future in China. Firstly, the increasing demand for proper marketing model from SMEs should not be neglect.
According to the National Development and Reform Commission, Department of Small and Medium-Sized Enterprises (SME) figures, as of F’05, there were 43 million SMEs in China. These SMEs are mainly 39 million individual businesses (small businesses registered with some government departments). Statistics from the State Administration for Industry & Commerce (SAIC) suggest that the number of SMEs in China is roughly 24 million.–JPMorgan: Nothing but Net 2009
The overall number of SMEs in China is large, meaning the competition would be rather intensive. These SMEs have urgent need for obtaining more business opportunities, expanding brand influence and even promoting the company culture (of course, taking account into the current economic environment, the need had better be met with favorable cost). Considering that social media marketing is an economical choice, it won’t take long before more to choose it as a high-cost performance marketing model.
On the other hand, big brands keep on investing in public relationships; yet the investment will also become conservative due to the economic recession. Under such circumstances, social media marketing can be applied as part of a long-term brand strategy or public relations management. It won’t spend as that much but will bring profound significance.