Social Media: Is it worth it? Mark’s Reply!

I saw this question on a site called Moneyweb.com and the author states that she was unconvinced that it was worth it.  I tried to answer but the site would not accept my comment (the nerve!).  I also decided that it was worthwhile enough to copy my answer as use it as the source for a blog. So here we go.

Does advertising on TV generate sales for companies?  There is now so much data from companies like AC Nielsen and IRI that we know what works and what doesn't and companies spend as much on TV ads as possible for one reason. It makes them MONEY. 

Yet even 30 years ago it was much more of a guess that it was an important moneymaker than empirical fact.  Early on in the Internet (and I'm only talking about 12 to 14 years ago) there were many arguing about the true values of company websites.  I heard it back then (when I was developing them) does anyone "really" make any money from having a website?  Than a little company called Amazon came along, then another "small" company called EBay happened on the scene and people stopped asking that silly question.

Will history repeat itself?  Probably.  I say that because we have already witnessed the success that companies are enjoying with websites and making real money.  The sheer volume of people that are populating the social sites are creating such a strong pull (for business) that to ignore them is very risky.  More importantly, is the success that I am forecasting going to come from existing social networks or will a new kind of social network need to be developed to make that happen? That remains to be seen.  Right now, if properly used, the social networks can help businesses stay in touch with clients / customers.  In today's economic climate retaining business can mean surviving or not surviving.  Now that is really a worthwhile question.

And when it comes to the wine industry there are so many other issues popping up right now it may seem like just one more fire to deal with.   I understand that viewpoint but hope that not too many wineries are seduced by that argument.  Yesterday in the newspapers (yes, occasionally I read them) an AP report stated that although the recession may end by the end of this year or early next year (they hope) it is a strong possibility that the economy will remain weak through 2012.

That is 3 and ½ more years!  If you couple that fact with the survey just published by AC Nielsen that 76% of the 5000 wine buyers surveyed will not change (back) their current spending pattern the wineries need to understand now that they need to find a way to do more.  Social networking only costs a business time.  And yes, time is money, but keeping customers around for another day brings in money.

Simple: you need to make a choice!