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Businesses Still Wary of Social Media

Sep 21, 2009
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You’d think by now business owners would have figured out that social media is the next tidal wave on the Internet, and that they’d better get on the surfboard or get wiped out. Well, think again. SmartBrief on Social Media,  an e-mail newsletter that goes out to some 30,000 business readers, reports that nearly 85 percent of readers surveyed “have experienced resistance to social media as a business strategy.”

When asked “Where have you encountered the greatest resistance to social media in your organization?” the two leading responses were (not surprisingly) the president/business owner (21 percent) and senior management (20 percent). Of those readers that “successfully overcame resistance to using social media” at their place of business, more than half of them said they “just did it, and served as the role model themselves.”

Chris Brogan, author of the new best-selling book Trust Agents, suggests
it may require more than “just doing it,” however. He thinks it takes good arguments about improving the company’s communications and bottom line, not simply espousing the coolness of social media. He recommends sharing relevant case studies to prove that other businesses are getting legitimate results from using social media. It wouldn’t hurt to get a member of senior management to be a cheerleader, either.

“It’s just a matter of finding the right opportunity to recommend that your company is ready to play in the game,” Brogan says. “It might mean finding your top competitor already using the tools, but hey, that’s won several social media enthusiasts the chance to get things going.”

In an interview with SmartBrief on Social Media, marketing expert Valeria Maltoni, who writes the ConversationAgent blog, reinforces Brogan’s points, saying it’s crucial to “speak the language of business when describing social media” and “focus on the opportunities that exist in the marketplace.” The three most common mistakes Maltoni sees in pitching social media to senior management are not tying the strategy into business goals, lack of insight into where social media can be integrated into the company’s business strategy, and poor execution capabilities.

Maltoni says that entrepreneurs tend to immediately understand the benefits of social media: “They get it, they know they can use the tools to amplify their off-line activities and scale their own presence and participation in customer communities.” Large organizations, on the other hand, may be more resistant because they are “more siloed and less organic.”

The bottom line seems to be that for business leaders to embrace social media, they’ll need to hear a compelling business argument that includes some justification for ROI.

Filed under: Contextual Advertising + eCommerce + Internet Strategy + Online Advertising + Social Media + Social Networks & Networking
  • http://www.position2.com/ Mary Ann Johnson

    When it comes to embracing Social Media, larger enterprises will be apprehensive. It is a known fact that senior management resists the use of Social Media for their Business. It could be because of the lack of control or the informal nature of communication. Efforts need to be made by CEO’s and top management to understand how Social Media can be used effectively for Business.

  • http://www.bloggingwithchris.com Chris Peterson

    Hi again Barry!
    I agree with you that big corporations demonstrate higher resistance to kinda risky ideas of social media.
    Mostly, due to following factors:
    1. Misrepresentation of idea

    2. Higher & rather more personal exposure may not always be on minds of corporates.

    3. It’s a fascinating next big thing on net. But it has currently attracted only youngsters who are psychologically more open to change than corporates.

    4. Who loves change, anyways?

    5. There are way too many people in power ladder to convince than a single decision making entrepreneur.

    6. It’s higher risk for established product than a new product anyways.

    But, truly, it would be worth the risk & effort.

  • http://www.rhinofish.com Pat Grady

    i wonder if the execs hate when people at their country club try to sell them something… and they realize, for the better, that there’s a part of the marketing + social activity mix that is antithetical.

    in any case, it’s a teeny lil surfboard:
    http://www.smallbusinessnewz.com/topnews/2009/09/21/where-is-your-traffic-coming-from

    “You’d think by now business owners would have figured out that social media is the next tidal wave on the Internet, and that they’d better get on the surfboard or get wiped out.”
    there’s a place for it in many circumstances for sure, but this isn’t a killer tidal wave. in fact, i think the over-hype detracts. seems like you’re saying that if the ceo doesn’t get on board, there’s a real threat the entire company will be wiped out. this assertion is quite ridiculous to me. and i’m betting any ensuing discussion here won’t be reasonable either.

  • Barry Silverstein

    Pat: Thanks for the comment. Actually, I think you make a good point about the over-hype surrounding social media. I personally don’t believe large company CEOs who are not ready to embrace social media will drown. Sorry if you got that impression. On the other hand, I do think a smart business leader should keep a close eye on social media, just as he/she should any important communications trend, and determine how best to use it on their company’s behalf. Companies that stay ahead of the curve will do a better job relating to consumers — and they’re the ones who are informing us of social media’s importance.

  • http://www.rhinofish.com Pat Grady

    I was wrong about any ensuing discussion, your reply was reasonable, even handed and incisive. Happy to see that! Regretting expecting otherwise.

    Facts are that growth is what we all seek, so judiciously pursuing all new and emerging avenues that open is smart and necessary. With the aggregate time consumers spend socializing on the Internet, it is completely and thoroughly marked as an avenue worthy of very deep exploration! Every time I read a post by Matt Cutts I think about how he has been placed in a position to be client facing – seems to me that smart CEO’s of uber large corps, would do well to tag certain in-house folks to be interactors, socially – to give their org a non-exec personality that easily interacts, in meaningful ways, with the users and purchasers of their products. I think most C-level folks know they can’t effectively interact for a variety of reasons – and they also don’t want the wrong folks doing it sans reins. Seems to me that we’ll see more titles like Social Media Evangelista and Reciprocating Spokesbrain (like Spokesperson or Spokesmodel, but suited for the Net). Communications Director sounds nearly militant, and certainly unsocial, as well as lacking bi-directionality.

  • Barry Silverstein

    I love the conceptual implications of “Social Media Evangelista” and “Reciprocating Spokesbrain.” If only companies had the guts to create such roles!

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