Where are the Greenbacks?

Saturday morning’s meeting at the Caltech/MIT Enterprise Forum featured the topic of New Media Revenue Models: Growing Greenbacks in the Digital Ecosystem. Although we wished there was a clearer focus on ways to actually obtain greenbacks (especially for smaller and start up companies), the keynote speakers, panelists and audience helped make it a very informative experience.

Where Social Media Fails
This topic came up and the panelists did a very good job of showing how and why social media marketing can fail.

  • Relevancy– Instead of spending millions on a Super Bowl ad this year, Pepsi has come up with a Refresh project, where users can vote to allocate funds to a certain charity. Although this is an interactive campaign promoting worth causes, Steve Banfield questioned its relevancy when tied back to Pepsi’s brand. For example, the current leader for the $5,000 block is a charity that will send girl scout cookies to overseas troops. What does this have to do with the Pepsi brand?
  • Keeping Momentum– When something goes viral, it can spread like wildfire. The I’m with CoCo Facebook Page has nearly 1 million fans. How do you keep your fans and followers excited and willing to participate? The momentum can’t and won’t last forever. Traditional marketing channels have years of research and tons of studies to go off of. While social media marketing is more of an experimental tactic that will take some trial and error.

Where Businesses Fail
In a classic episode of The Simpsons, Homer becomes a human guinea pig in testing experimental products for some extra cash. He tries an appetite suppressant that works surprisingly because it makes the person blind! Why crave food when you can’t see it?

Scientist 1: Who’s gonna buy a pill that makes you blind?
Scientist 2: We’ll let marketing worry about that.

Many companies, small businesses and individuals fail because they put too much emphasis on social media marketing. They begin to forget that it’s important to provide excellent products and services. Marketing consists of ways to make your product look good, BUT is it actually good? Consumers aren’t stupid and if you offer them shoddy stuff it won’t matter how many friends or followers you have. Chances are, you’ll end up on Consumerist and your bad reputation will follow you for years to come.
Bottom line: Always work hard to improve your goods/services and let marketing take care of the rest.

Check out some tweets on the forum and learn more about upcoming events here.

Matt Ramage is founder of Emarketed a web marketing agency located in Los Angeles. He loves coffee, good design, and helping businesses improve their look and getting found on the Internet.

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