Facebook Continues on its Merry Way to Social Media (and Web?) Dominance

Here’s a very interesting finding ripped from today’s social media headlines: The Business Insider and other media outlets are reporting that Facebook now accounts for nearly one in four page views on the Internet in the United States.

So claims database marketing consulting firm Drake Direct, which has studied web traffic in the U.S. and the U.K. by analyzing data collected by Compete, a leading aggregator of web statistics.

Just to give you an idea of how significant Facebook’s results are: by comparison, search engine powerhouse Google accounts for only about one in twelve page views.

And Facebook is now closing in on Google when it comes to site visits – with each currently receiving around 2.5 billion visits per month. In fact, studying the trend lines, Drake Direct anticipates that Facebook site visits will surpass Google any time now.

Another interesting finding is that the length of the average Facebook visit now surpasses that of YouTube (~16 minutes versus ~14 minutes per visit), whereas YouTube had charted longer visits prior to now.

These findings underscore the continued success of Facebook as the most successful social media site, even as it has grown to 350+ million users, including more than 100 million in the U.S. with 5 million added in January alone. No doubt, it’s on a roll.

Social Media and the Internet: Click … or Clique?

All of the hype about social marketing and social media might make you believe that people are flocking to this new form of communications in droves.

Well, if you think this … you’re right. And now we have the stats to prove it. The Nielsen Company has just released web statistics for the month of August that report that time spent on social networks and blogging sites accounted for ~17% of all time spent on the Internet.

Compared to August 2008, this figure is nearly triple the percentage of time spent on social networks and blogging sites just one short year ago. Seeing as how there is an upper-limit ceiling on the total amount of time available to spend online in any given day, the increased attention on social media is coming at the expense of the more traditional use of the web as an informational tool.

This is not to say that text and video content don’t remain central to the online experience, because that is clearly the case. But the ability consumers have now to use platforms like Facebook and blogging sites to “connect, communicate and share” is what’s driving much of the continuing growth of the web and online engagement.

Because of this new emphasis, is it any wonder more online advertising dollars are chasing social media than ever before? Nielsen pegs advertising on social media sites as representing ~15% of total online ad spending in August 2009. That’s more than double its proportion a year earlier.

Along with the shift in online ad revenues to social media sites, we’re also experiencing a major change in clickthrough behavior as it pertains to online display ads. Research published recently by comScore shows that the percentage of people who clicked on one or more display ads during a monthly period of Internet interaction – in this case March 2009 – was only ~16%.

How does that result compare with earlier surveys? It’s dramatically lower, and dropping. Just two years ago in 2007, ~32% of people online clicked on at least one online display ad over a month-long period – twice the proportion as today.

What’s more, the comScore analysis reveals that a very small portion of viewers represent the vast majority of the clickthrough activity. Specifically, only ~8% of the people are responsible for ~85% of all clicks. Of course, we can be sure that the robust clickthrough behavior of these 8% translates into equally robust product sales … NOT!

Clearly, any company that is attempting to promote products and services over the Internet needs to carefully study the composition of its market and the behavior of its online audience targets before making extensive online advertising program commitments.

The reality is, with the dynamics we’re seeing such as the behaviors noted above, it’s more likely an online promo effort will fail rather than succeed unless a dispassionate review of the situation is done beforehand and a practical, realistic program put into place.

But that’s so unlike many of the web advertising programs we’ve seen implemented up to now, which could be best characterized as: “Throw a bunch of advertising at the web and hope some of it sticks.”

Companies are Concerned about the Risks of Social Media

As blogs, Facebook, Twitter, LinkedIn and other social media tools have moved into the mainstream in a big way, managers at many companies are responding with interest … as well as concern. On the “interest” side, social networking is seen as having great potential for enhancing relationships with customers and promoting brand affinity. But there’s also “concern” that social media has the potential to damage a company’s reputation through the dissemination of information that is unflattering, taken out of context, or simply wrong.

Now, thanks to a July 2009 national survey of nearly 500 management, marketing and HR executives conducted by Minneapolis-based firms Russell Herder and Ethos Business Law, we have a more quantitative idea of the collective corporate thinking about pluses and minuses of social media.

Four out of five respondents in the Russell Herder/Ethos field research believe that social media can help build a company’s brand. In addition, nearly 70% see social media as a viable employee recruitment tool, while two out of three recognize its potential as a customer service tool.

But the survey also found that over 80% of respondents believe that social media poses a corporate security risk. Similarly, half of the respondents consider social media to be detrimental to employee productivity.

These findings show that senior company managers are somewhat ambivalent about social media. They see its positive potential … but at what cost? On the other hand, is shutting the door on social media a wise response (or even a viable one)?

One solution to this dilemma is to be found in dusting off an old standby – the employee handbook. In many companies, policies have evolved over the years to cover pretty much every kind of issue – from what constitutes approved and non-approved workplace activities, attendance policies, and conducting personal business during office hours to policies regarding alcohol consumption, gender/age/racial discrimination, and sexual harassment.

Why not incorporate new guidelines outlining the company’s philosophy toward social media and what constitutes appropriate company-related social media activities on the part of employees?

While it may also be a very good idea to conduct meetings or training sessions on social media as well, this a good first step that will give employees a sense of the “boundaries” they should observe when commenting on company-related issues in the social media realm.

The alternative is a “Wild West” atmosphere in which a problem is destined to arise sooner rather than later. And when that occurs, if no formal social media policies are in place, the company will have no cause for defending itself in the court of public opinion – as well as little recourse for disciplining in addition to counseling the employees involved.

How “social” should your office environment be?

In the early years of the Internet, companies worried about the loss of productivity if employees were tempted to surf online in amongst their work duties. There was also the issue of the “appropriateness” of the web content being viewed. In response, various web tracking capabilities were introduced that enable companies to monitor online activities on networked computers.

On the other hand, as the Internet became all-pervasive in daily life, many companies also adopted a policy of allowing a modest amount of web surfing during work breaks to allow employees to conduct personal business such as shopping and bill-paying.

Now, with the rise of social media, the whole issue has been brought to the fore once again. The proliferation of Facebook accounts in particular has resulted in a new spike of personal online activities at work. A recent study by Nucleus Research bears it out. Based on study findings, Nucleus deduces that companies allowing employee access to Facebook lose an average of 1.5% in total employee productivity. And in an era of cutthroat competition globally, 1.5% of productivity is no slouch amount.

To reach this conclusion, Nucleus Research found that slightly more than three-fourths of the employees surveyed have a Facebook account. Of those who do, nearly two-thirds admitted to accessing their account during working hours.

The average amount of time spent per day on Facebook on office time is about 15 minutes – although the study uncovered a few employees who spent upwards of two hours daily during work hours. (Shame on those employees … but shame on their employers, too, for being so utterly clueless about those employees’ behavior!)

Of course, some people’s activities on Facebook have a business purpose, don’t they? Well … it is true that some employees manage “fan” pages for their company as an adjunct of their personal Facebook account. But that shouldn’t represent more than a small portion of any firm’s workers – perhaps those in the marketing, sales, HR or shareholder relations departments.

And the Nucleus Research study findings reflect this as well, because nearly 90% of the respondents who access Facebook at work could not articulate a business justification for doing so.

Perhaps the study’s most surprising finding was the ~5% of respondents who never access Facebook anywhere but at work. What this may mean is that they built their entire Facebook profile on work-time as well. Chalk up some more wasted hours!

The Nucleus Research findings demonstrate that as time progresses and various social media platforms like Facebook and Twitter become even more pervasive communications tools for people at all levels in the organization, the old guidelines for balancing work and personal life must continue to evolve.

The kneejerk reaction is to simply block access to Facebook on all office computers. But there will always be some employees who have a legitimate business reason to be on Facebook. And then there are the the ever-growing ranks of telecommuters working offsite, who surely have access to alternate laptops or PDAs even if their company-issued equipment blocks access.

As is usually the case with situations like this, the easiest fix is sometimes not the best one. And at the end of the day, “big brotherism” could reduce employee morale even further — hardly the result one would hope for in the current difficult business climate where “improving company morale” is far more just an abstract concept in an HR textbook.

Hype and Hope: The Twittering Machine in Action

Twitter logoOver the past few days, we’ve heard reports of how the post-election demonstrators in Iran have been using Twitter as a means for organizing protests, moving crowds from neighborhood to neighborhood to keep one step ahead of the armed authorities … and to upload images and video clips of the demonstrations to broadcast to the rest of the world. Twitter has played an important (and successful) role in engineering a “grand workaround” scheme, thwarting a government-ordered news blackout.

We saw the same phenomenon play out in the Eastern European country of Moldova just a few months back.

Viewed from this perspective, Twitter seems to be living up to its billing — in spades.

But there’s also research that shows another side of the coin. A just-completed Harvard University study of 300,000 Twitter users has found a classic rule of behavior in force: just 10% of users are generating more than 90% of the content on Twitter.

It goes even further than that. The average Twitter user “tweets” about once every 75 days … or even less frequently. And the median number of tweets made per person is … One!

That’s right. More than half of the 300,000 people in the Harvard study have sent just one tweet ever. It was with dry understatement that Bill Heil, the Harvard Business School graduate who carried out the study, reported, “Based on the numbers, Twitter is certainly not a service where everyone who has seen it has instantly loved it.”

I have an additional explanation to offer: Perhaps most people haven’t (yet) figured out what to do with Twitter to make it meaningful in their lives.

It didn’t help that Twitter itself set the bar at a pretty low level right from the start by suggesting that users answer the question: “What are you doing?” How inconsequential is that?

As it turns out, the trivial isn’t where Twitter has found its true voice.

Indeed, ask the Iranians or Moldovans whether Twitter has been meaningful in their lives. You’ll get a life-and-death answer in the affirmative.

Recruiting New Employees in a Web 2.0 World

Facebook has overtaken MySpace and other sites to become the largest and most popular social networking choice for young and old alike. And while LinkedIn still maintains an edge over Facebook as a professional networking resource, Facebook has done a very effective job in blurring the lines between personal and professional social interaction on the web.

The latest development that proves this is the increasing popularity of company “fan” pages on Facebook. Anyone can start a fan page showcasing a company they know and love … and many employees have taken the opportunity to create pages for their own organizations. My own company, Mullin/Ashley Associates, is no exception. Currently, Facebook offers more tools for uploading interesting content such as photo galleries and video clips, along with providing a great platform for news updates, wall postings and chat.

Going further, some companies have elected to turn Facebook into their vehicle of choice to promote themselves to prospective employees. Posting videos of employees talking about their positive work experiences … including pictures of the office environment … showcasing employee events … all of this brings a company to life far more effectively than just by advertising open positions on web job boards such as Monster.com.

The beauty of using Facebook in this manner is not only that companies can make a bigger and better impression, but they can do it without having to incur any significant cost. And if it’s done particularly well, it might even result in lower costs, as fee-based recruitment ad placements can be reduced or even eliminated.

Increasingly, people are being connected through social networks, and this phenomenon will only grow in the months and years ahead. In such an environment, companies that champion “content, creativity and community” will be the winners. That goes for hiring, as well.

Twitter: The “Next Big Thing” in Marketing Research?

By now, it’s obvious that Twitter has become the newest darling of the social marketing world. With somewhere around ten million users today and growing exponentially (there were fewer than one million just a year ago), it’s clear that Twitter has successfully made the leap from novel curiosity to mainstream communications vehicle.

Indeed, Twitter may have worthwhile applications beyond simply the ability for people to update their status information in real time from a mobile phone, computer or online portal. In fact, Silicon Alley Insider recently ran a contest inviting readers to submit their ideas for turning Twitter into a financially viable social network.

The winning entry? An idea from Chicago communications agency Denuo recommending that Twitter charge marketers for access to opted-in users willing to field an occasional research question from brands. Twitter would also charge for dashboard access to the research analytics.

I think this idea has a good deal of merit. Instead of incurring the cost to design and deploy custom research projects, simply tap into Twitter’s existing platform and huge user base to “anonymize” the data and open it up for mining.

Of course, some people voice concern that Twitter will soon be overrun by brand-related messages and advertising. That’s actually begun to happen as certain brands “follow” twitterers ad nauseum — so much it almost constitutes a form of cyber-stalking. But by offering operating an online research panel such as this, Twitter has the potential to deliver scads of valuable, actionable data at the speed of “now.”

Like YouTube, Twitter is actually going to have to figure out a way to make some money for its investors, and soon (imagine that?). So this idea bears watching.