Social Media & Web 2.0

2010 November 12

Web 2.0 is the term used to describe internet content that is richer and more collaborative than traditional, static, information-only websites. Dynamic, user-generated content or 'social media', is changing the way that businesses now build customer relationships online - creating new opportunities but also potential risks for your business.

The internet is a vital tool for any modern business. Customers’ today search online for everything trades such as plumber, dentist or hairdresser is now online as much as global brands. New technology and faster connection speeds mean more customers and businesses are connected than ever before.

Chris Brogan states that  -“The difference between PR and social media is that PR is about positioning, and social media is about becoming, being and improving”.  While this quotation gives a great meaning to social media and how it can influence and build your business Avinash Kaushik has even more interesting insight about it:

“Social Media is like teen sex. Everybody wants to do it. Nobody knows how. When it’s finally done there is surprise it’s not better.”

While some people might get lost about the idea of social media for others it means more business. Very often knowledge is the main reason for companies to achieve success and definitely knowledge of Social Media is one of those causes.

In addition accordingly to e-Marketer -Social Networking & Social Media Ad Spending to Rise 13.2% in 2010 to 1.3 Billion!.

Thus in real term it is possible to see even greater value of Social Media.

As social media becomes more influential, customers are increasingly being influenced by the opinions of strangers when making buying decisions for their own families. Some of the obvious reasons is that consumers are no longer reduced to information only provided by company about their product. The have a wider source of references which gives them better insight of comparing different product based on unbiased opinions of other users.

Importance of Social Media and e-WOM will be discussed in part 2