Analysis of New Marketing Mediums

Hardly a day goes by in the marketing world where 'Facebook' goes unmentioned. It quite simply has got entrepreneurs hot under the collar, and is set to make a small fortune with all the money that is currently been pumped in. Microsoft have famously secured themselves a 5% share in the social network due to their investment somewhere in the region of $250m. It also emerged this week that billionaire Li Ka Shing of Hong Kong is set to invest $60m in the site in order to move along the burgeoning Chinese advertising market. With so much excitement about the potential ROI, businesses are keen to get involved and it has become the hot topic of the moment.

So why is there so much hype around Facebook? Well personally I didn't see what all the fuss was about until a couple of months ago when I got railroaded into joining, and honestly I have never looked back!! With so many members spending hours on the social site, it is surely a blessing for cunning marketers who strive to be heard and remain relevant in a world where talking to friends online is increasingly commonplace.

One of the most powerful marketing tools of all time has to be WOM and this is where Facebook really falls into its own. The increase in blogging and social networking has allowed consumers to have a powerful voice. They can tell people all over the world of consumer experiences and serve to influence others purchase decisions and overall brand perception. It has never been more important for companies to be good at what they do and offer consumers what they want.

Getting it wrong can have disastrous effects. For example HSBC found themselves in hot water with students when they decided to scrap interest free overdrafts. The students revolted and made noise through Facebook. Publicity of the business strategy was catapulted throughout the net and with so much fuss been made, HSBC decided to backtrack and listen to their target market. Similarly, BP came under fire with their high prices of fuel when a group formed on Facebook initiating a boycott of all BP garages.

It's not all bad news for companies though, Primark have won themselves the hearts of many shoppers who are all too happy to communicate this satisfaction by forming an appreciation society on Facebook. The group has obtained somewhere in the region of 98,000 members. Primark needless to say have just secured themselves one of the most powerful advertising tools there is, and at no cost to themselves! So there are plenty of reasons for companies to embrace social networking, and there are plenty of reasons to be wary and watch their backs. Social networks provide consumers with a quick and easy way to make or break a company. The consumer has never been more powerful and influential.

However this article does not set out to portray Facebook as invincible. Even Facebook has its critics. This week saw concerns over consumer privacy on the net escalate. Beacon had reportedly been publishing private, personal information through the Facebook news feeds. This resulted in a protest, which Facebook have resolved through adding more precautions and warnings to members. Thus, consumers remain diligent that their privacy must be the upmost concern and heavily influence all corporations regardless of stature.

It will be very interesting to see Facebook and other social networks grow and watch the progression. It has certainly given marketers food for thought, and those not rushing to jump on the bandwagon may find themselves left behind.

Who could imagine a world without Google? Google has become such a big player that it is hard to dispute the key role it plays in the contemporary business world. Nowadays Google makes more money than sense! Making more profit through online advertising than ITV do on ads, it's has reached phenomenal success and become one of the big corporate giants of all time.

Google famously built its business strategy on simplicity; opting for one plain, easy to use toolbar. Google's search engine success lies in the fact that it cuts out unnecessary messages and delivers what the consumer wants at a time when they request it. Demographics are ruled out and people find they have more access to data than they have ever had before.

However, there are fears that Google is becoming too obtrusive and breaching privacy. The giants are currently in limbo as to whether a court ruling will allow their partnership with Doubleclick. The billion dollar deal partnership will allow advertisers more information on search histories and there are fears that it will put Google at too much of an unfair advantage to their competitors.

There is also the rising speculation that Google allows companies to 'bribe' their way to the top of the SERP by bidding more money than their competitors. Also there are concerns that companies are bidding on keywords that are most popular and not necessarily synonymous with what their company offers. Therefore consumers are not getting the targeted results that they are so used to and often find themselves sorting through advertising gimmicks to find the real relevancy in the results.

However, despite this Google still accounts for approx 63% of all searches in the UK (http://www.netimperative.com/news/2005/10/10/Google_UK_searches/ )and remain of upmost importance within the online marketing community. They are even branching out in ethical business by investing money in research and implementation of renewable energy sources to power their business. For the time being Google is not going anywhere and remains the search engine at the top of all online marketing strategies.

We have already seen in the last section that Google makes more money on advertising than ITV, but why is this? Is the domination of traditional TV ads nearing a close? Well there have been certain developments in the industry that have hindered the continued success of TV advertising.

Firstly, the introduction and high take-up rate of PVRs and online shows has presented consumers with more flexible viewing regimes. There is no need to watch ads anymore as people can just jump through to the programmes. With growing popularity of PVRs like SkyPlus, it is going to become harder for TV ads to maintain as much success as they have previously seen.

Instead of watching adverts on the box, consumers are opting to view them online, through Youtube and various other sites dedicated to advertising. Big businesses are starting to see the benefits of Youtube and are using this medium as a feasible strategy to get their ads maximum exposure.

There is also the inherent feeling within the marketing community that adverts on TV are just not the same anymore. There is less flexibility and more red tape to conquer. Numerous companies have found themselves in trouble over exaggerated claims of been good for the environment or healthy, as consumers are becoming more aware of falsehoods and seek to name and shame those not playing fair.

Alcohol companies and high fat food companies find themselves up against strict rules that they must now adhere to. Neither are allowed to advertise during kids TV and both have to come with warnings. Now a lot of drinks companies advertise through the strap line of encouraging consumers to drink their produce, but to drink sensibly. This is to combat rising numbers of binge drinking and to help the government with their crackdown.

So where does this leave TV adverts? With more people bypassing them, and with increased regulation, it is hard to say in the long term. It would be a crying shame if they were stripped out all together. Broadcasters need them to help fund shows, and some adverts are just truly genius and compelling to watch. There may be a shift to more companies advertising online, but I think there will always be a place in many peoples' hearts for TV ads!

Whatever your views on the three marketing mediums I have analysed above, it is clear that this is a very exciting time in the marketing industry. So much creativity and innovation is flowing around that hardly one day is the same as the previous. Personally I am very interested to see marketers grabble with new marketing mediums and watch the story unfold. It is hard to say at this point in time, where the industry will go next and what excitement will follow tomorrow!