US ad agencies – 95% of them – are using social media to identify potential clients for themselves. Unfortunately, their social media efforts are only generating 10% of their new business.
That just has to hurt...
This news is from a study done by RSW/US and RSW/AgencySearch. (Ironically, two divisions of an ad agency.) And it’s reminiscent of the news that came from Nation’s Restaurant News in 2010.
Then it was restaurant owners going whole-hog into Facebook. Their customers, on the other hand, were less than interested. So while 65% of restaurant owners were using Facebook Pages, only 3% of their customers cared. Still, that’s 50% better than what the “pros” (ad agencies) are accomplishing.
Hear my take on why ad agencies can’t even find the boat at www.smcande.com (It’s short for Social Media: Cheap and Easy, and it reads like candy. Perfect for Halloween.)
Ad agencies, after pouring lots of time energy and effort into using Facebook, have discovered that only 2% of potential clients prefer to be contacted though Facebook. Something tells me they’re saying “oops,” and someone – maybe a few someones – are now looking for alternate employment.
In fact, of the options provided, most US marketing decision makers prefer to be contacted via e-mail (79%). Snail mail comes in second at 41%. And LinkedIn vastly outperforms Facebook with 16% of decision makers accepting contact from ad agencies.
Simple Truth: Social Media cannot save a sinking ship. But it can certainly sink a healthy ship.
Most business owners hear me say that and immediately think about people bad-mouthing their business. Just like information piracy, bad reviews are really not the problem. Just look at the success Domino’s has had by publicizing bad reviews.
Social media can ruin a healthy business precisely because it takes time, energy and effort. Getting an account is free, using that account can be a huge drain on your resources.
After you listen to this week’s episode of Social Media: Cheap and Easy, listen to the previous two episodes. In them, we take a look at a company called Collective Bias. They’re an ad agency – although completely unlike any other ad agency I’ve encountered – and they’re getting social media right.
Where ad agencies can’t get a grip on social media – Collective Bias is producing increases in the range of 51% for year over year sales.
The key element is HOW they’re using social media.
In carpentry, and all trades, there’s an adage that the tools don’t make the carpenter. It’s how you use the tools you have that makes the difference. And while everyone else is focusing on Facebook, Collective Bias is making effective use of the most powerful social media tool available: Blogging.
They have a massive community of bloggers with engaged audiences. They also keep a healthy distance between those bloggers and the brands. Why? Because the brands would poison the well – often without ever meaning to, or realising they’re doing it.
I could go on for pages and pages. So seriously, you need to listen to this week’s episode of Social Media: Cheap and Easy, plus the previous two episodes. Then come back here and start posting your questions and comments. It’s time for every local business to give the boot to ad agencies, and start enjoying some real success with your marketing.