If you hear your digital supplier mutter “G-Moot” under his breath when you ask for your own social networking site, you know you’re in trouble. It’s industry-speak for ‘get me one of those’, referring to the mentality of clients asking for their own bit of MySpace.
In the last year alone, the social networking space has proliferated from a few dominant players to thousands of copycats. Even proprietary tools such as Nino have been created for laymen to make their own social network — instantly. But does that mean brands should get their own social networking site? Or are you simply buying another Web 2.0 moniker, while feeding into a predictable dotcom-like bust?
1 For the uninitiated, a social networking site is synonymous to this real life scenario: a networking event filled with participants actively, and candidly, discussing a range of topics. But one inherent problem is that the definition of an online social network remains superficial at best: it’s an enclosed group of web-based members, often strangers in real life, who enter the community with the purpose of exchanging ideas and information.
2 Given the addictive, engaging nature of such sites, creating a community for your own brand is tempting. “Social networks contain captive audiences that are spending a lot of time on the site, constantly sharing information about themselves and advertising the products and services they use,” says Joanne Goh, marketing manager of Earth9. “They provide a tool for companies to get to know their target audiences directly and intimately.”
3 In order for a custom-built site to flourish and be sustainable, companies need a tenable degree of humility. “It can work if the platform is focused on meeting the needs of the user, not the company — then it is actually useful to the end user,” says Goh. For example, Samsung’s regional web and mobile-friendly social networking site, Uberme.com, doesn’t contain a Samsung logo in sight. Instead, it uses the platform to launch marketing campaigns and glean personal insights from its members.
4 Still, white elephants abound in the social networking space. Let’s go back to the networking scenario. Would you still expect a room full of people to be engaged if they were assigned topics of conversation? Or if they couldn’t talk without being interrupted by a sales pitch? “Networking is one thing, but content is key,” says Sylvia Lee, marketing director of Reap Media. “Clients need to play a more active role in maintaining the integrity of the site. They need to know how to plant certain ideas and appear transparent.”
5 Even one of the world’s best marketers, Nike, made this mistake. Joga.com, which launched in the lead-up to last year’s World Cup, has become a well-documented flop. Though the idea appeared foolproof — a World Cup-themed website for football fans to discuss the game and view exclusive content on Nike-sponsored stars — it gained little traction outside of Brazil. Professionals in the field have widely concluded that this was due to Nike’s overwhelming brand placement and emphasis on its own sponsored players.
6 But some brands have managed to find spaces for their ideas. One of the most buzzed sites of the year hasn’t even launched: Sony’s ‘Home’. Home applies the Second Life model — a virtual world — to the PS3 platform. Future PS3 players can furnish their own living quarters with virtual accessories, accolades and videos. Microsoft is another well-oiled company getting ready to launch a promising tack: a networking portal catered to the finance industry, where connections and fast information exchange are crucial.
7 Between 2001 to 2006, venture capitalists invested more than US$824 million in social networking companies — convincing tiny companies to give it a shot in hopes of a future MySpace-like buyout. But is the bubble going to burst soon? It’s hard to say, particularly as internet behaviour is notoriously fickle and the phenomenon of social networking is now about two years old. Meanwhile, consumers are quickly growing more discerning among sites. Perhaps you should think twice before saying “G-Moot”.
What it means for…
Advertisers
Online social networking isn’t just for young, introverted geeks. A recent report from comScore USA found that half the visitors on MySpace were aged 35 or older.
Be prepared to invest — time, not just money. Content needs to be constantly refreshed, says Reap Media’s marketing director, Sylvia Lee.
Transparency is crucial. Sites fall off the radar if the consumer feels like he’s no longer participating in a neutral medium.
Agencies
Be pessimistic when a client asks for their own social networking site. Are they willing to invest? What are their expectations? Have they narrowed down their target audience?
Given the proliferation of social networking sites, it’s even harder to sustain loyal members. Keep in mind that your site competes for online time with the likes of MySpace and Facebook.
