SOCIAL MEDIA, THE BIGGEST COCKTAIL PARTY ON THE PLANET.
People say Twitter is like one big cocktail party. And they’re right. Twitter, Inc. (“Twitter”), a micro-blogging site – and other social networking platforms such as Facebook, Inc. (“Facebook”) and LinkedIn, Inc. (“LinkedIn”) – are the new form of communication.
And by that, I mean that of the more than 1.6 billion people that use the internet everyday, 44.5 million use Twitter worldwide. The number of unique visitors to Twitter increased by 959% in August 2009 alone.
Facebook, a social networking website founded in 2004, had 350 million users as of December 2009, up from 150 million in January 2009, and roughly 45 million Facebook status updates are posted everyday, give or take. If Facebook were a country, it would be the eighth most populated in the world, just ahead of Japan, Russia and Nigeria.
LinkedIn, a professional networking site launched in 2003, had fifty million unique users as of October 2009, and about one new user per second. When LinkedIn launched in 2003, it took 477 days – almost a year and four months – to reach its first million members. The last million took only 12 days.
In terms of popularity, social media beats out e-mail. The blogosphere is doubling between once and twice a year, and there are over one million blog posts daily. Ad spending on social media and blogging sites grew 119% in August 2009 alone, and 94% of business continue to invest in social media.
Why the rate of usage? Why the monetary investment?
Ask Dell, Inc. (“Dell”). Dell started tweeting Twitter-exclusive discounts from the Twitter-handle @DellOutlet in June 2007. A year later, it had over half of a million followers and had pushed sales to around $3 million by June 2009. After two and a half years, the company claimed $7 million in total Twitter-based sales. Why it worked, Dell has succeeded in using Twitter to transform its large corporation into a “mom and pop shop” for millions.
Ask PepsiCo, Inc. (“Pepsi”), who is hoping for the same story when it announced in December 2009 that it’s walking with its $20 million television ad budget for the Super Bowl to invest it in social media instead. The campaign has been dubbed The Pepsi Refresh Project.
Or ask Pepsi how it recently used social media for crisis prevention. In Fall 2009, Pepsi released its iPhone application for its AMP energy drink called “Before You Score,” which broke women down into 24 types, suggested “lines” to ensure men had a successful night with them, and then encouraged men to share their exploits on Twitter and Facebook. Tweets blasting the application as sexist and derogatory quickly went viral on Twitter. Since Pepsi was monitoring the Twitter stream for chat about its brand, however, it was able to quickly pull the application, apologize, and avert a full-scale public relations nightmare.
If asked, these companies would brush aside suggestions of social media as fad, and say they’ve adopted social media as a business approach. They’d say they’re opting for a medium where they don’t simply talk to the consumer, but the consumer talks back. In real-time. They’re investing in a conversation with us, because what we say on social media sites is the new advertising, as we are the new media.
LAWYERS WELCOME.
The legal profession, unsurprisingly, lags behind. In the 2009 Continuing Legal Education (“CLE”) seminars I gave on Social Media and the Law, roughly 80% of attorneys didn’t have laptops with them at the conference. Even more didn’t know what social media is. I was even asked to define “real-time,” which Model Rule of Professional Conduct 7.3 currently covers.
The hard numbers, of the American Law 100 Law Firms, only 29 are tweeting. Worse, just nine of the 29 firms post to Twitter on a regular basis and timely basis, meaning they post news within 24 hours. Translation, social media is becoming a missed opportunity for lawyers.
And it is an opportunity. Of the 38 American Law 100 law firms that have embraced two or more forms of social/new media averaged a 6.46% increase in revenue, with the 17 firms using three forms averaging a 5.93% increase, and the 7 firms using four or more, averaging a 6.5% increase.
Moreover, the best in business use social media. The fastest growing Fortune 500 companies adopt social media marketing initiatives at much higher rates than other companies. Of these, 68% monitor mentions of their company name or brand on social media sites, 34% reported that they were social media to communicate with vendors and suppliers, and 26% cited Twitter as an important vehicle for communicating with outside partners.
Perhaps most important, roughly 93% of Americans believe you should have a presence on social media sites.
THE AFTERPARTY.
Coming up with a strategic plan that maximizes the benefits of social media (monitoring the competition, brand/reputation management, crisis prevention, customer service, and marketing) while minimizing risks (implementing best practices, enforcing a social media policy), is so last decade.
What’s now? Location-based marketing through services such as Foursquare and Gowalla, and the applications they ride on in mobile phones across the globe.
What next? Lawyers finding a way to use these location-based technologies to market their firm, manage their brand, and offer superlative client service. How do you do this? I leave this, and whatever else show up at the party next, to you.