Social Media Spending Habits: Early Adopters and Naysayers

 Sergio and the guys at Marketing Sherpa recently released findings from a social media survey they conducted.  Though there are no major revelations, it’s still great to keep one’s finger on the pulse of social media expenditures and how executives perceive this constantly evolving marketing channel.  

Here’s what they found:

1. 49% feel that social media has a future for generating ROI.  Additionally, they feel that conservative budget increases are warranted to achieve desired ROI
2. 27% feel that the value of social media is unknown; therefore, only done if time permits.
3. 17% feel that “why pay for the milk if I can get the cow for free”
4. 7% feel that social media is delivering measurable ROI and have desire to increase budgets liberally for a more refined execution [read: increased ROI and brand positioning]

They seem straight forward, but the two that truly jump out are numbers 3 and 4.  They represent the opposite sides of the spectrum. 

“Why pay for the milk if I can get the cow for free?”

There are two ways to look at this group.  On one hand, this mindset limits their ability to think creatively on ways to generate more top-of-mind-awareness and ROI.  This puts them “behind the eight ball”.  While their competitors are actively testing and generating positive results through their social media strategy, this group is too busy conducting their marketing through traditional- sometimes stale- methods.  

On the other hand, they may be like my parents were in the early 80s when the VCR was introduced to consumers.  Why pay full price for a product/service that will drop in price, solidify its best practices and be easier to leverage?  They may be lying in wait for the social media frenzy dust to settle.  This could ultimately position this group to hit the ground running without being limited by early stage social media limiting beliefs.

Early adopters writing the rules

The 7% of responders that feel that social media does nothing but add brand and bottom line value have a lot going for them.  They affect more change in the evolution that can ultimately, directly benefit how their business and/or vertical benefit from taking these new strategies seriously.  Somebody has to do it.  These early adopters are the trailblazers in marketing, corporate strategy and brand management.  

Social media early adopters take the calculated risk and reap all of the rewards.  Not only do they realize increased ROI and elevated top-of-mind-awareness, they can easily find themselves included in case studies that document the A players in specific verticals that are shaping how social media is successfully leveraged.  The Kogi Truck is a great illustration of this.

I’ll be keeping my ear to the ground on the evolution of these sorts of numbers.  In what category do you fall?