Gaining Consumer Trust Online and Offline

Marketers must leverage trust, not just popularity

Trust and credibility are the gold standards by which relationships are measured. This is true of personal relationships as well as connections between people and brands.

The rise of social media has reinforced the importance of trust. Successful and enduring social networks such as Facebook and LinkedIn are built on a foundation of trust and transparency. But social media has also distorted the notion of trust and put an emphasis on the size of a person’s network and connections.

“Most people’s decisions are shaped by word-of-mouth input, whether online or offline, from a tight circle of close friends and relatives,” said Paul Verna, eMarketer senior analyst and author of the new report “Word-of-Mouth Marketing: Leveraging Trust Online and Offline.” “Marketers seeking to maximize their reach should focus on the quality of social network connections rather than their sheer size.”

According to Invoke Solutions, quantitative measures such as the volume of content and participation, the length of time people have been fans or followers, or the raw number of followers or fans mattered far less in inspiring trust than the openness of the dialogue, the quality of the comments, and the responsiveness of the sponsor or author.

And Vision Critical found that among US consumers overall as well as daily social network users, friends and family were trusted for product recommendations far more than brand-originated content or people consumers did not know.

And marketers around the world agree that popularity does not equal influence on social media sites.

“The level of influence over one’s friends, followers or fans is the real key, and influence does not necessarily correlate to the size of the network,” said Verna.

In addition, there is a feedback loop between online and offline word-of-mouth, and marketers must understand the connections and differences between the channels.

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Netbook Shoppers Consider Other Mobile Devices

Consumers researching online data about netbook computers for possible purchase are also considering other devices, according to analysis from Compete.

Aspire One Shoppers Research Handsets, Other Netbooks
Analyzing online research habits of consumers considering purchase of the popular Acer Aspire One netbook as part of a two-year AT&T data plan, Compete found that 13% also researched the Apple iPhone 4 mobile handset.

In addition, 6% researched the Palm Pixi Plus mobile device and 5% got information on the Apple iPhone 3GS handset. Consumers also viewed data on competing netbooks; for example 11% researched the HP Mini 110 and 8% looked up the Samsung GO.

HP Mini 110 Shoppers Also Consider Smartphones
Consumers considering purchasing an HP Mini 110 netbook as part of an AT&T two-year data plan demonstrated a slightly different cross-shopping pattern. Thirty-seven percent researched a competing netbook, the Samsung GO.

However, a still significant 15% looked up the Samsung Captivate mobile device and 11% researched the iPhone 4. The Samsung a777, a refurbished feature phone offered free with a two-year AT&T data plan, also proved popular with prospective Mini 110 buyers (13%).
In addition, 13% of potential HP Mini 110 shoppers researched the Pantech Ease mobile computing device.

Smartphones, Mobile Devices Pose Serious Netbook Threat
Compete notes that these results, collected in September 2010, reflect long-term trends rather than a one-month spike in smartphone and smaller mobile device interest among prospective netbook buyers. Considering that smartphones not only offer 3G mobile web browsing but also mobile entertainment and file storage in an interface that feels less like an inconveniently small computer and more like a conveniently powerful phone, and that tablet computers are rapidly growing in popularity, Compete advises that netbook sales may drop.

More Americans Own Mobile Phones than Computers
A higher percentage of US adults owns a mobile phone than owns a computer, according to new data from the Pew Research Center’s Internet & American Life Project. Pew data indicates that 85% of Americans now own a cell phone. Cell phone ownership rates among young adults have reached 96% of 18-to-29 year olds. Meanwhile, three-quarters (76%) of Americans own either a desktop or laptop computer. Since 2006, laptop ownership has grown dramatically (from 30% to 52%) while desktop ownership has declined slightly.

Google admits to accidentally collecting e-mails, URLs, passwords

Google admitted in a blog post Friday that external regulators have discovered that e-mails, URLs and passwords were collected and stored in a technical mishap, while the vehicles for Google's Street View service were out documenting roadway locations.

According to Google, data was mistakenly collected in more than 30 countries, including the United States, Canada, Mexico, some of Europe, and parts of Asia.

In the blog, posted by Alan Eustace, senior vice president of engineering and research, he noted "we failed badly here" and added that Google has spent months analyzing how to strengthen their internal privacy and security practices.

"We want to delete this data as soon as possible, and I would like to apologize again for the fact that we collected it in the first place," Eustace wrote.

Google announced in May that it had collected unencrypted WiFi data by mistake through its Street View service, but the severity of the situation was unknown.

According to a Google spokesperson, the company first became aware of the problem when the Data Protection Authority in Germany asked Google to review all of the data collected through its Street View cars as part of a routine check. The spokesperson added that in addition to street locations, Street View cars also collect WiFi data about hot spots in order to improve the location database for things such as Google Maps for mobile.

When Google went back and looked at the data, it turned out that in addition to WiFi hot spots, they were mistakenly collecting information that was being sent across unencrypted networks.

For the information to have been collected by Google, a person had to have been sending something over an unencrypted network at the same time that a Street View car was collecting data in that same location.

According to Google, the vast majority of the data is in fragments, but in the past week several countries have issued reports that they have found entire emails and passwords.

The data has since been segregated and secured, and WiFi data is no longer being collected from Street View cars.

Google has deleted the data collected from Ireland, Austria, Denmark and Hong Kong, but other countries have opened their own investigations, and Google has not been given permission from authorities to delete the data.

In a statement, Connecticut Attorney General Richard Blumenthal said, "This alarming admission that Google collected entire e-mails and passwords validates and heightens our significant concerns. Our multistate investigation, led by Connecticut, into Google's alleged invasion of privacy through wireless networks is continuing."

In the blog post, Eustace outlined the steps that Google is taking to strengthen its internal privacy and security practices including appointing a director of privacy across both engineering and product management and enhancing the core training that engineers and employees responsible for data collection receive.

"We are mortified by what happened, but confident that these changes to our processes and structure will significantly improve our internal privacy and security practices for the benefit of all our users," Eustace wrote.

Story by Marina Landis, CNN - www.cnn.com

Good Experiences Motivate Women to Share Product Info

Females care more about relating positive vs. negative word-of-mouth

Marketers looking to spur brand advocacy among women—or those worried about the possibility of negative brand buzz facilitated by social media—have another piece of evidence that good experiences are a key motivator of brand discussions.

A survey of online women in North America by female-focused marketing and communications firm Harbinger found that 92% of them turn to friends and family for product information, making word-of-mouth their top source. They consider it important to seek and share information on a variety of product categories, with appliances, restaurants, automobiles and entertainment leading the list.

In the food and beverage category, which more than two-thirds of female internet users said they were likely to share information about, 58% said they would do so because of a good experience. A bad experience would motivate 46% of respondents to speak up.

Experiences with appliances—which 80% of women surveyed said they would spread the word about—were even stronger motivators. Four in five respondents reported they would share good experiences with others, while just under three-quarters said the same of bad experiences.

In every product category studied, sharing good experiences, and often a desire to help other consumers make smart purchases, came ahead of sharing bad experiences as a word-of-mouth generator. A truly negative brand experience may still garner negative buzz online or offline, but the women surveyed were more inspired by the positive.

And despite the popularity of social media among women—and marketers' propensity to target them there and turn them into online brand advocates—those studied preferred to share information with friends and family face-to-face (92%). They were also more likely to share info in person with strangers or acquaintances (36%) than via a website (32%) or social networking site (27%).

Corporate Blogging Goes Mainstream

Becoming fully incorporated into media and marketing

Blogging has been around for well over a decade—an eternity in internet time. Whereas blogs used to be a thorn in the side of traditional journalism, today they’re an essential ingredient in the media mix. Hardly a news organization exists that does not have a blog where its journalists post updates to breaking stories, offer personal commentary and engage in a dialogue with readers and viewers.

Similarly, blogging has grown into a vital marketing tool for all types of companies, including Fortune 500 marketers and mom-and-pop retailers. eMarketer estimates that 34% of US companies will use a blog for marketing purposes this year, a proportion that will continue to grow to 43% by 2012.

“Businesses are increasingly using the blogosphere to further a variety of corporate functions, such as communications, lead generation, customer service and brand marketing,” said Paul Verna, eMarketer senior analyst and author of the new report “Corporate Blogging: Media and Marketing Firms Drive Growth.”

While blogging still tends not to rate such high usage as newer forms of social media like Facebook and Twitter, it still has many strengths, including full control over branding and advertising, integration with all corporate web properties, no limits on post length and the existence of a full, easily searchable repository of information. And studies have noted blogging’s usefulness for lead generation.

In addition to marketing, blogs have also become more fully integrated into the world of communications. In the early days of blogging, the established media showed a definite distrust of such nontraditional publishing. By October 2009, according to a Cision-led study, nearly two-thirds of US journalists reported they used blogs to publish, promote and distribute what they wrote. And according to PRWeek and PR Newswire, about a third of journalists used corporate blogs as research sources in 2010, up from a quarter last year.

“This confluence between established and emerging media is making blogging an integral part of the news cycle,” said Verna. “As consumers assimilate blogs into their media consumption, they are less likely to distinguish between a blog and a traditional news outlet.”

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Google Gains Search Ground

Google gained ground in its dominance of the US explicit and total core search markets in September 2010, according to monthly comScore qSearch analysis.

Google Takes Larger Share of Explicit Core Search
Google Sites held 66.1% of the US explicit core search market (which measures user engagement with a search service with the intent to retrieve search results) in September 2010, up 1% from 65.4% in August 2010.

Second-ranked Yahoo Sites lost 4% of its explicit core search market share, dropping from 17.4% to 16.7%. No other explicit core search provider experienced significant month-over-month fluctuation.

More Explicit Core Search Queries Performed via Google, Microsoft
More than 16 billion explicit core searches were conducted in September 2010, up 2% from 15.7 billion the previous month. Google Sites ranked first with 10.6 billion searches, up 3% from 10.2 billion searches; followed by Yahoo Sites in second with 2.7 billion, down 2% from slightly more than that total the previous month.

Microsoft Sites came in third with 1.8 billion explicit core searches, up 3% from 1.7 billion.

Google Also Grows Total Core Search Share
Google Sites accounted for 63% of total US core search queries conducted in August 2010, up 4% from a 60.5% share the previous month. Yahoo Sites followed with 19%, down 9.5% from 21% the previous month, and Microsoft Sites came in third with 12.5%, down about 2% from 12.8% in August 2010.

Google Sites Jumps in Total Core Search Queries
The total number of core search queries performed via Google Sites jumped 8%, from 10.2 billion to 11.1 billion. Meanwhile, second place Yahoo Sites lost 5%, dropping from 3.6 billion to 3.4 billion. Third place Microsoft Sites increased its total number of core search queries 2%, from 2.16 billion to 2.2 billion.

Total US core search queries grew 4% in September 2010, rising from 16.9 billion in August 2010 to 17.7 billion.

Teen Texting Jumps 8%

US teens age 13-17 sent and received average of 8% more text messages in Q2 2010 than in Q2 2009, according to new data from The Nielsen Company.

Teen Females are Queens of Texting
Teens age 13-17 sent and received average of 3,339 monthly text messages in Q2 2010, 8% more than Q2 2009 and more than six per waking hour.

No one texts more than teens (age 13-17), especially teen females, who send and receive an average of 4,050 texts per month. Teen males also outpace other male age groups, sending and receiving an average of 2,539 texts. Young adults (age 18-24) come in a distant second, exchanging 1,630 texts per month (a comparatively meager three texts per hour).

Texting Trumps Safety
Texting is the main reason teens get a cell phone, with 43% claiming it is their primary reason for getting one. Safety, which was the main teen reason for getting a phone in 2008, is now less important. It is secondary among girls and less so among boys. Keeping in touch with friends is still one of the top three factors, too.

Overall, percentages of teens citing specific reasons for obtaining a cell phone did not greatly vary between Q2 2009 and Q2 2010.

Voice Usage Drops in Younger than 55
Tracking use of voice telephony by age group, voice usage declined in every age bracket younger than 55 between Q2 2009 and Q2 2010. It slightly increased among the 55-to-64-year-old and 65 and older demographics.

Voice activity has decreased 14% among teens, who average 646 minutes talking on the phone per month. Teen females, who are more social with their phones, average about 753 minutes per month, while males use around 525 minutes.

Teens Use More Mobile Data, Apps
While teen usage of mobile data and applications does not reach levels of activity seen by young adults, it has increased substantially since Q2 2009, growing from 14 MB to 62 MB. This fourfold increase is the largest jump among all age groups. Much of this boost is led by males, who are more gadget-savvy and consume 75 MB of data, compared to 17 MB in Q2 2009. Teen females use about 53 MB of data, compared to 11 MB a year ago.

Teens are not only using more data, but they are also downloading a wider range of applications. Software downloads among teen subscribers who use apps enjoyed a solid 46% increase in activity, from 26% to 38%. This includes popular apps such as Facebook, Pandora or YouTube.

Usage of the mobile web has also surpassed activity on pre-installed games, ringtone downloads and instant messaging. Other mobile activities like mail and text alerts have also seen significant growth.

Teens Text 5x More than Adults
Teens ages 12-17 send and receive a median of five times more texts per day than adult texters, according to recent data from the Pew Internet & American Life Project. Slightly more than half (51%) of adults who text send one to 10 texts per day, compared to 22% of teens.

The percentages of texting adults and teens who send 11-20 and 21-50 average daily texts are fairly similar. Where teens begin to outpace adults is in the percentage who send 51-100 average texts daily (18% to 7%), and more notably in the percentage who send 101-plus average texts daily (29% to 8%).

Ultimately, adults who text typically send and receive a median of 10 texts a day; teens who text send and receive a median of 50 texts per day.

More Americans Own Mobile Phones than Computers

A higher percentage of US adults owns a mobile phone than owns a computer, according to new data from the Pew Research Center’s Internet & American Life Project.

Cell Phones, Computers Top Gadgets
Pew data indicates that 85% of Americans now own a cell phone. Cell phone ownership rates among young adults have reached 96% of 18-to-29 year olds. Meanwhile, three-quarters (76%) of Americans own either a desktop or laptop computer. Since 2006, laptop ownership has grown dramatically (from 30% to 52%) while desktop ownership has declined slightly.

Less than Half Own MP3 Players, Video Games
Ownership rates of other popular gadgets among US adults do not reach 50%. Slightly less than half of American adults (47%) own an MP3 player such as an iPod. This represents a nearly five-fold increase from the 11% who owned this type of device in early 2005.

Console gaming devices like the Xbox and PlayStation are nearly as common as mp3 players, as 42% of Americans own a home gaming device. Parents (64%) are nearly twice as likely as non-parents (33%) to own a game console.

Tablets, E-readers Grow with Early Adopters
Compared with the other devices on this list, e-book readers (such as the Kindle) and tablet computers (such as the iPad) are relatively new arrivals to the consumer technology scene and are owned by a relatively modest number of Americans.

However, these devices are proving popular with traditional early adopter groups such as the affluent and highly educated. Ownership rates for tablets and e-book readers among college graduates and those earning $75,000 or more per year are roughly double the national averages of 5% and 4%, respectively.

Multiple Ownership Common
Eight in 10 American adults (78%) own two or more of these devices, and the median adult owns three of the seven gadgets we asked about in our survey. Among other factors, device ownership is highly correlated with age.

For example, the typical adult younger than age 45 owns four devices, while the typical adult between the ages of 55 and 64 owns two and the typical senior (age 65 or older) owns just one. Those with high levels of income and education are also more likely to own a relatively large number of devices compared with those with lower income and education levels.

iPad Owners Valuable to Advertisers
iPad owners may currently represent a small segment of the adult US population, but they demonstrate a number of demographic trends that make them valuable to advertisers, according to research from The Nielsen Company. iPad owners skew younger and more male than owners of many other portable computing devices. Sixty-five percent of them are male and 63% of them are younger than the age of 35.

Google eyes online consumer index

US internet titan Google is readying its own 'Google Price Index' based on a vast database of online purchases, providing a daily measure of inflation, said a top company official quoted in the Financial Times.

Google has not yet decided whether it will publish the index (GPI), which is still in development, the group's chief economist Hal Varian said at the National Association of Business Economists conference in Denver, Colorado.

Varian said the GPI indicates a 'very clear deflationary trend' for goods purchased online in just under a year of data gathering, a potentially worrying prospect for US officials.

The GPI, calculated differently from official statistics of consumption -- a key indicator of US economic growth -- as it only accounts for products sold on the internet, but can be a much faster tool as results could be modelled at real-time speed.

The most recent official data from the Commerce Department was released at the beginning of October and showed consumer spending in August. Those figures showed spending rose 0.4 per cent in August as consumers spent slightly more than expected for the second straight month.

Story from www.ninemsn.com.au

Email Still Tops Facebook for Keeping in Touch

Only 18- to 24-year-olds use the social networking site more than email for passing items on

Content-sharing has become a staple of internet usage for most online adults. Research from Chadwick Martin Bailey found that three-quarters of web users are likely to share content with friends and family, and nearly half do so at least once a week. But while much social networking content is built around such shared items, most people still prefer to use email to pass along items of interest.

Overall, 86% of survey respondents said they used email to share content, while just 49% said they used Facebook. Broken down by age, the preference for email is more pronounced as users get older. And only the youngest group polled, those ages 18 to 24, reverses the trend, with 76% sharing via Facebook, compared with 70% via email.

Earlier research from StrongMail and ShareThis also found email was still on top for content-sharing. Other studies have shown that, when limited to sharing on social sites, Facebook is No. 1.

Asked what gets them to share content online, web users polled by Chadwick Martin Bailey revealed selfish motivations. Rather than focusing on sharing content they thought the recipients would find helpful or relevant (58%), most respondents cared more about what they thought was interesting or amusing (72%). Asked to select the single biggest reason they shared content, the greatest percentage of respondents (45%) again said it was because they enjoyed it. Men and women reported similar reasons for sharing, but motivations varied by age. The oldest respondents cared more about the value of content to recipients: 67% of those ages 55 and older said they shared items because they would be useful to recipients, compared with just 45% of 18- to 24-year-olds.

This difference in sharing motivation could have a relationship to the method of sharing. Email is a more targeted form of sending content; while content-sharers may shoot off mass emails to large distribution lists, most email shares are likely sent to a person or small group selected based on the specific content being shared.

Sharing via social networks like Facebook, by contrast, typically involves feeding items to an entire friends list. The youngest users, who care the least about whether the recipients of their content actually want to see it, are also most likely to disseminate the information to the widest group. And the seniors and older boomers who find the recipients' needs more important dramatically favor email for sharing, suggesting they are sending relevant items to only those who will want them.

When Eyeballs and Dollars Don’t Match Up

No one can be faulted for thinking that the size of someone’s Facebook friends list is a proxy for that person’s level of influence. After all, people who are influential are often also popular, and in a Facebook and Twitter world popularity is measured in friends and followers.

But a new report from Vocus and FutureWorks principal Brian Solis throws a healthy dose of skepticism on the supposed correlation between popularity and influence. The report—provocatively titled “Influencer Grudge Match: Lady Gaga versus Bono”—surveyed 739 marketing and communications professionals who work with influencers to gauge their perceptions of what makes an influencer.

A surprising 90% of respondents answered “yes” when asked whether there’s a big difference between popularity and influence.

Nearly the same percentage, 84%, believed that there was a correlation between an influencer’s reach and his or her ability to drive action. This indicates that respondents made a clear distinction between popularity and reach, and regarded the latter as the key that determines a person’s influence.

The survey did not define any of these terms, so it was up to the respondents to interpret them. From the results, it’s apparent that respondents regarded popularity as the sheer number of contacts on a social network and reach as the ability to actually communicate meaningfully with some number of those contacts. As one respondent put it, “A person can have only a few contacts and greatly influence just those few.”

Asked which type of social network participant would have the most measurable effect on an outcome, 57% picked someone who has “a handful of fans/friends/followers that are tightly connected,” versus 8% who picked someone with “millions of fans/friends/followers with little or no connection.” Quality over quantity.

Despite this data, many marketers are on a seemingly relentless quest to beef up their own social network profiles and reach users with lots of friends and followers. In the Vocus-Solis study, 57% of respondents said they’d be willing to pay for an influencer to help them “drive actions or outcomes.”

Further, Twitter recently unveiled its Promoted Accounts platform, which allows marketers to essentially pay for access to users based on the sizes of those users’ networks. Quantity over quality.

And an eROI study of social metrics tracked by US marketers found that two-thirds tracked changes in the numbers of friends, followers and fans. More qualitative measures such as reach of messaging were much lower on the scale. Again, quantity over quality.

Story by Paul Verna, Senior Analyst

Mobile Behaviour Varies Globally

US mobile users do the most social networking, European mobile users text the most, and Japanese mobile users are the most connected, according to new comScore MobiLens data.

US Leads in Mobile Social Networking, IM
A comScore cross-market analysis of mobile activities in the US, Europe and Japan revealed significant differences among consumers by geography. Out of the three markets, in June 2010 social networking/blogs reached the greatest percentage of mobile users in the US at 21.3%, followed by Japan at 17% and Europe at 14.7%.

Perhaps reflecting the slower adoption of advanced mobile technology in the US as compared to other global markets, social networking and instant messaging (17% reach compared to 12.6% reach in Europe and only 3.3% reach in Japan) were the only major mobile activities where the US had a significant lead.

Europeans Text Most
Messaging methods also varied, with Europeans displaying the strongest use of text messaging with 81.7% sending a text message in June 2010, compared to 66.8% in the US and just 40.1% in Japan.

Japanese Most Connected
Mobile users in Japan were the most “connected” of the three markets, with more than 75% using connected media (browsed, accessed applications or downloaded content) in June 2010, compared to 43.7% in the US and 38.5% in Europe.

Japanese mobile users also displayed the strongest usage of both applications and browsers with 59.3% of the entire mobile population accessing their browsers in June 2010 and 42.3% accessing applications. In addition, Japanese users exhibited the highest reach in the email category at 54%.

Comparatively, 34% of mobile users in the US and 25.8% in Europe used their mobile browsers, with 31.1% in the US and 24.9% in Europe accessing applications.

Japanese Mobile Use Patterns Most Age- and Gender-Balanced
A comScore demographic analysis of mobile media users across markets showed that mobile media consumption was more balanced across age segments in Japan when compared to the US and Europe. In the US, 25-34 year olds were 44% more likely to access mobile media than an average mobile user, with 18-24 year olds 39% more likely. In Europe, 18-24 year olds represented the most-connected segment, 54% more likely to be mobile media users, while persons age 25-34 were 35% more likely.

The US and Europe also showed greater gender disparity among mobile media audiences. Females were 9% less likely to be mobile media users in the US, while females in Europe were 16% less likely.

Twitter Scores Globally
In all three markets, the top mobile social media brand mirrored the top PC-based social networking brand, with Facebook leading in the US and Europe and Mixi leading in Japan. Local brands Gree and Mobage Town were the number two and four most-accessed social networking brands in Japan. Twitter was the only brand to be ranked in the top four in all three markets.

Mobile Twitter Use Explodes
Mobile usage of the Twitter social network has increased more than 60% in the past five months, according to data from Twitter. The total number of mobile Twitter users grew 62% between April and September 2010, according to statistics compiled by Twitter. In addition, since that time, the number of Twitter users who start out using Twitter via mobile device has risen from 5% to 16%. Furthermore, close to half (46%) of all Twitter users at least occasionally access the network via mobile device.

Social Media Training Day Auckland New Zealand - Last Chance to Register

What a fantastic response we’ve had to our next social media training day in New Zealand, over 550 real estate agents are confirmed as attending the 2 sessions on the day, we still have room for a small number of additional places for agents who’d like to attend the afternoon session on Wednesday the 6th October.

Location is The Great Northern Room, Ellerslie Event Centre, Ellerslie Racecourse Auckland New Zealand, as I mentioned earlier the morning session is now fully booked, so the only session available is the afternoon session commencing at 1:30pm.

You can download the flyer with all the information on the sessions Social Media Training Day New Zealand Registration Form or you can book by faxing the completed registration form to 00617 5534 1046, you can also email your registration form to amazing@iangrace.com.au or info@mikeandrewconsulting.com

Room is limited, so the earlier you register, the more likely you’ll reserve yourself a place.

Your speakers for the day will include Ian Grace and Mike Andrew

Companies Struggle to Keep Social Media Content On-Message

Nearly three-quarters of blog posts don’t reflect corporate messaging

Marketers and other corporate communications professionals may sometimes feel they have a thankless task: carefully craft messages about their company’s thought leadership, social responsibility efforts and new product or service launches, only to find those messages distorted as they’re disseminated through the media.

PR and communications firm Burson-Marsteller analyzed more than 150 messages sent out by companies in the Financial Times Global 100 list of firms and discovered a large gap between the messages that went out and how they were covered on blogs.

Message distortion was highest for companies in Latin America and the US, with a global average of 69% of blog postings not reflecting the message companies were trying to send. According to the report, bloggers tended to include “opinions, personal experience, knowledge of competitors and products, and speculation.”

Distorted messages are not a new phenomenon; they have been a problem in mainstream media as well. Still, the message gap between companies and the traditional media is significantly smaller: Less than half of all messages in mainstream media failed to reflect company messages, and here the US performed above average.

But as blogs continue to grow in importance and become integrated in mainstream outlets, along with the growth of other forms of social media, the chances for message distortion are likely to be high.

One way companies can combat the message gap is to make the most of owned media. If companies create their own compelling content and distribute it across social networks, there is no room for such a gap. Bloggers are not likely to simply reprint such old-media items as press releases, but relevant branded content can attract links across Facebook, Twitter and the rest of the social web.

According to the “2010 Social Media Usage, Attitudes and Measurability” study from King Fish Media, HubSpot and Junta42, 73% of US companies with a social media strategy were using branded content they created in their campaigns. Such original content was considered the most important part of a successful social campaign, with nearly half of respondents calling it “extremely important.”

Small Businesses Change Social Media Expectations

About a quarter of small businesses now marketing via social media

After climbing steeply, according to research from Network Solutions and the Center for Excellence in Service at the University of Maryland’s Robert H. Smith School of Business, small-business adoption of social media marketing has plateaued at 24%.

The study of US small business found that those that do market via social media primarily use Facebook (82%), and that the most common activities are maintaining a company page on a social network and posting status updates or links to interesting content. About half of businesses that used social media also monitored brand chatter on social networks.

As small businesses have gained experience with social media, some have realized their expectations for the channel did not line up with the reality of the social web. As the wider marketing world begins to look at social as more of a loyalty channel than one for acquisition, small businesses are also finding that their hopes for spreading brand awareness and attracting new customers have not been fully met. By contrast, somewhat fewer small businesses had expected to use social media as an engagement channel, but nearly two-thirds have had success in that area.

The most common business objectives small businesses have achieved through social media marketing tell a similar story: Customers are connecting with companies through sites like Facebook and LinkedIn, but relatively few sales leads have been received through the sites.

Small businesses have found other frustrations as well. Many say their efforts take up more time than they had expected, although that percentage dropped from 50% to 43% between December 2009 and June 2010, suggesting companies are being more realistic about what’s involved in social campaigns. At the same time, however, the percentage saying their business had been criticized online nearly doubled, reaching 29%. Still, just a tiny 1% of small businesses said their image was hurt more than it was helped by social media—a number that’s also down, from 6% in December.