So how much does social media impact businesses today? Even the following video is uploaded by YouTube, a viral video site that is connecting people across the world. YouTube is the leading online video provider, with over 4 billion videos being viewed every day. About 8% of these videos are monetized using advertisements from thousands of businesses around the world. As the following video by ColderICE.com explains, “the revolution will not be televised, it will be digitalized.
”
Businesses Are Uploading YouTube Videos to Market Their Brand
Businesses are utilizing YouTube to promote their products or services. For example, Scott Herman Fitness posts short workout clips with hopes of YouTube viewers purchasing full length videos on their online store. In addition, Smirnoff, a leading vodka manufacturer, has posted a rap music video parody entitled “Tea Partay” to promote the releasing of a new flavor of vodka. H&R Block held a contest to promote its tax filing services entitled “My Super Sweet Tax Refund.” YouTube users filmed humorous videos of themselves explaining what they would do if they won the $5,000 which H&R awarded to the funniest user submission. Other businesses are using YouTube for damage control by posting videos about their business’ mistakes. JetBlue’s CEO personally apologized for the incompetence of JetBlue customer service when there was a winter storm in February of 2007. The CEO of FedEx also apologized via YouTube for the actions of a driver that was caught on camera throwing a computer monitor delivery over a fence. These examples are just some of the numerous marketing strategies that companies are starting to adopt with the growth of social media.
The Music Business Profits from YouTube Videos by Linking Songs to Amazon and Itunes
Amazon and iTunes have also reaped the profits of music sales through YouTube. Many YouTube users add music to the videos which they upload but do not have the copyright licenses to legally use the music. YouTube allows users to have songs in their videos as long as they directly link these songs to iTunes and Amazon so viewers have an option to purchase the songs. I can personally attest to the success of this marketing strategy. I frequently listen to artists on YouTube and I buy their songs using the Amazon links. In fact, I have switched from iTunes to Amazon when buying songs because Amazon is actually cheaper.
Online Businesses Increase Marketability by Allowing Consumers to Review Products
With the increase of social media, companies have also increased their sales by using customer-based review websites. I interviewed Professor Howard Frank (former Dean of the Maryland Business School) to hear his take on social media’s impact on businesses. Professor Frank says that the biggest change in online marketing in the past 10 years is that customers can get almost anything they want online.


Online retailer Amazon.com (see photo to right)
has used different aspects of social media to easily market its product. Amazon users can write reviews, rant, or rave about products which they have purchased (red arrow) and ‘like’ products too. Furthermore, users can share their own product images which may show flaws in product design or product strengths (green arrow). Finally, users can also share the product they like to sites such as Facebook and Twitter (blue arrow).
Businesses Making Facebook Pages to Promote Products
Businesses also use Facebook and Twitter to market their
products and services. With over 840 million Facebook users and over 465 million Twitter users, businesses can effortlessly market their products to millions of people with
a status update or tweet. Nike uses its Facebook page to communicate with its 8
million fans. For example, in honor of the upcoming NFL season, Nike debuted
its newest football jerseys. Facebook users who ‘liked’ this post then shared
it with their friends, demonstrating another aspect of E-Word-Of-Mouth.
Businesses Use Twitter to Build Personal Relationships with their Customers
Many owners of businesses tweet in order to have a more personal relationship with their customers. Consumers then feel more inclined to buy products or services because they can personally connect to the seller. Richard Branson (founder of Virgin Group) tweets about anything—ranging from what he eats to parties that he is attending. One of his recent tweets reads, “Here are some photos of the baby #gorillas we flew to Gabon, thriving in the African bush.” All of these tweets connects Branson to his followers/customer base which contributes to a more personalized level of marketing.
Many owners of businesses tweet in order to have a more personal relationship with their customers. Consumers then feel more inclined to buy products or services because they can personally connect to the seller. Richard Branson (founder of Virgin Group) tweets about anything—ranging from what he eats to parties that he is attending. One of his recent tweets reads, “Here are some photos of the baby #gorillas we flew to Gabon, thriving in the African bush.” All of these tweets connects Branson to his followers/customer base which contributes to a more personalized level of marketing.
Businesses Face Disadvantages Using Social Media Marketing
Businesses are still not
completely focusing their advertising efforts on Facebook and Twitter. There
are several disadvantages to using social media marketing. Negative comments on
a product or service can be viewed by many consumers using online stores such
as Amazon. In addition, sites like Facebook can also have a negative
E-Word-Of-Mouth aspect. I remember my friend once posted a status about a
specific type of headphones: “Never buying Skull Candy again; got them two
weeks ago and they suddenly stopped working…” I have never bought a pair of
these headphones strictly because my friend posted this status. Another
disadvantage of social media as Professor Frank explains, is a large portion of
customer base are older and will not be familiar with these new social media
sites.