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Paid Advertising In Social Media

67 Pages ResearchFarm Ltd. March 22, 2011 SKU: RSFM6690844

Building and utilizing a winning New Social Media strategy to acquire new customers and engage and retain your loyal customer base

The rise of the internet and social media has generated huge amounts of interest and analysis on how new platforms allow better communication and engagement with customers. This report focuses on the equally powerful yet much less discussed potential of the technology – using paid for campaigns to reach out to new or less loyal consumers.

In terms of paid advertising, online allows for more flexible budgets, much more targeted campaigns, clearer results and redemption rates and ultimately better value for money than any other medium. However, at present it represents only a tiny proportion of business advertising budgets. But as of 2011 the networks, having initially been slow to monetise in favour of growing user numbers and perfecting user experience, are increasingly accepting that advertising offers great opportunities for driving revenue growth and profit maximation.

Networks are now slowly developing options to target, track and influence consumers through paid for advertising in ways that no other channels allow. Indeed through sophisticated segmentation the next coveted step in the evolution of marketing – achieving personalisation based on a person’s NSM footprint – becomes a distinct possibility. Moreover, the networks are ensuring that their services offer just as much potential to a one man business as they do to huge multi-national conglomerates.

Therefore B2C companies wondering where to direct advertising budgets, business looking to build exposure online and those who have had success with ‘free’ social media campaigns need increasingly to be considering the returns derived from paid social media campaigns.

Moreover, they need to decide which are the most appropriate platforms and types of advertising for achieving their goals, whether that be winning new customers or improving engagement with their loyal customer base and driving up retention rates of the most valuable customers.

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