Social media reluctance

Many corporate leaders are reluctant to change their marketing approaches for the sake of social networking, according to a new national survey conducted by KRC Research for MiresBall.

The survey found that most corporate brand executives believe they are better served by effectively utilizing online communications and traditional public relations activities in order to build brand awareness among consumers.

“It may indeed be hip to tweet and make Facebook friends for companies with newer brands looking to build awareness quickly, but many owners of established brands are not convinced that social networking on its own is the magic bullet for building customer loyalty,” Scott Mires, principal and creative director for MiresBall, said in a statement. “Simply building awareness is not enough today. What consumers are told — and how they respond — are most important.”

SURVEY FINDINGS
• Seventy percent of brand experts say they cannot successfully manage their brands without an effective online strategy and more than two-thirds (68%) characterize online communications as the most valuable vehicle for generating awareness and brand loyalty among consumers.

• While approximately half (52%) of those surveyed see social media as a way to build brand awareness among consumers who were previously unreachable, and more than a third (35%) believe social media is making it easier to create customer loyalty, nearly as many (30%) disagree that building customer loyalty has become easier because of social networking.

• Four in 10 (41%) of those surveyed feel the impact of social media is not serious enough to lead to a change in brand strategy, while roughly the same number believe social media presents new challenges for protecting a brand’s integrity, challenges that necessitate a change in strategy.

• Respondents said online communications provide the best return on the money spent managing their brand (68%), followed by public relations/promotional events (56%) and social media (40%).

• Nearly half of marketers surveyed agreed that the economic downturn made it more difficult to create brand loyalty (48%), while just over a third (35%) used the downturn to their advantage.