NIELSEN REPORTS , SOCIAL NETWORKS & BLOGS NOW 4TH MOST POPULAR ONLINE ACTIVITY, AHEAD OF PERSONAL EMAIL .

For months I have been on the social networking to grow your business band wagon.  We have personally seen the effects of its use here at Central Mass Web Design.  Now Nielson, www.nielsen-online.com has produced findings that show Social Networking and blogs via the internet is the fastest growing online category and is growing twice as fast as any of the other sectors.   Today, March 9, 2009, Nielsen released a report proving Social Media and Blogging are growing at a staggering rate.

Member Communities ( which includes Blogging) grew over 5 points in the past year, placing it above e-mail, and showing a growth of more than double any other.

Reports also show that time spent on social networks has increased globally by 18% in the past year.    Do you know what your employees are posting on their Facebook and Myspace accounts?  Do your employees know what you are posting on yours?

I recently gave a presentation to a local networking group on the benefits of using LinkedIn to grow their business and networking.  Part of this presentation talks about researching prospective employees via internet and social networking tools like LinkedIn.

LinkedIn Presentation

Time spent on Networking and Blogging sites is growing at over 3x the rate of all internet growth.  So much time is being spent on social networking sites it is eating into the time spent on other websites and activities.

The average age of online Community Networking Site Member has changed. Facebook started out as a service for university students but now almost one third of its global audience is aged 35-49 years of age, and growing.  Almost one quarter of all Facebook users are over age 50.

This is the way of the future, and I encourage you to get involved and grow with the times…before they leave you in the dust.  You can see the Nielsen report, in its entirety at http://blog.nielsen.com/nielsenwire/wp-content/uploads/2009/03/nielsen_globalfaces_mar09.pdf

Central Mass Web Design has actively been pursuing this avenue, and helping our clients to understand their Online Media presence.  All companies should be considering their Online Media presence when thinking about their website SEO.  Stay tuned for more information, on how to make MySpace, LinkedIn and Facebook work for you!

Kimberly Veautour

SB2 is a local group of Small Business owners and employees that get together once a month to talk about relevant topics.  The topics are determined by the group and the speakers are picked by the steering committee.  Please consider attending one of these events, they are great fun, very informative, and are becoming the source of small business education in North Central Massachusetts.

View the PDF file here: Free Small Business Seminar

In a story released today by Reauters (link here) Nike is quoted as saying that their ecommerce online sales are increasing due to “cost-conscious shoppers conserving gasoline”. Nike is reporting a 9% increase in online sales. That is incredible. I personally think that this increase is relative to the gas price in 2008. With gas prices coming back down, but the economy continuing to struggle, does this mean that Nike will see an even bigger increase in 2009? Not sure. I would think that the economy would have a much greater impact on their brand that the gas prices. If I am a consumer, I want to save money, and Nike is not known for their shoes as being sold at a low price point. They are known for quality and comfort and as long as their consumers continue to buy for quality and comfort, they may see a rise online, as the consumer will still get what they want and love but for a little less gas.

How does this impact your company? You really need to think about your products and services and how the economy is impacting them. Can you utilize the web more than you already are? As a business owner or marketing manager who is responsible for your website, you really need to analyze how you can benefit from the changing habits of your consumers.

In bad economic times, many companies will hide in their office and avoid marketing. To them, there is no reason good enough to spend money on marketing. While customers may stop calling, emailing and buying during a recession… they do not stop listening, watching and looking. Websites are being viewed, newsletters are being read, and direct mail is being opened. You need to look at why you advertise in the first place. You do it to generate more business! When your competitors start withdrawing their marketing budgets and scaling back their advertising costs, you should take every opportunity to pounce! What happens if you cut your budget but your competitors do not? They get your clients!

Let us look at the findings of a few studies completed over many years on this topic:

McGraw-Hill’s Research study of over 600 Businesses stated that “In 1981-1982, businesses that maintained or increased their ad spend averaged higher sales growth during the recession and in the following 3 years. By 1985, sales of the businesses that maintained or increased their ad spend during that recession actually increased sales 256% over those that had cut back on advertising. Aggressive recession advertisers increased market share 2.5 times the average for all businesses in the post-recession.”

An American Business Press (ABP) and Meldrum & Fewsmith study showed that “sales and profits can be maintained and increased in recession years and [in the years] immediately following by those who are willing to maintain an aggressive marketing posture, while others adopt the philosophy of cutting back on promotional efforts when sales appear to be harder to get.”

The ABP/Meldurm & Fewsmith 1979 study covering 1974/1975 and its post-recession years found that “Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and the two years following than those companies which cut in either or both recession years.”

RESEARCH HAS SHOWN TIME AND TIME AGAIN COMPANIES THAT ADVERTISE CONSISTENTLY, EVEN WHILE IN A RECESSION, HAVE INCREASED PROFIT IN THE LONG RUN.

How do you accomplish this?

1.) Develop messaging that explains how your product is needed during these harsh times.
2.) Build a message of value. Focus on the bang for your buck.
3.) Target the right clients.
4.) Maximize word of mouth and free advertising.
5.) Advertise on the internet, build a web presence, and make sure your website has new innovative content that is SEO friendly.
6.) Develop an email Newsletter, very low cost way to keep your clients informed of new products or specials.
7.) Increase your advertising.
8.) Spend time creating effective ad designs.
9.) Build your brand.

There is no doubt about it. Even though people are afraid to use the word recession, it is out there. With major corporations cutting back and laying off, it makes it even scarier. During this time you can establish a web presence that will stand the test of time, and be there when it is needed. You do not want to be the one trying to build your marketing campaign while everyone else that stayed with it, is now building their client base.

The good news is, this will all come to an end. The economy will turn around, and sales will increase. Keeping a positive attitude is essential! Then ask yourself…. When this turns around where do I want my company to be??

Kimberly Veautour

Acknowledgments:
“How Advertising in Recession Periods Affects Sales,” American Business Press, Inc., 1979
ABP/Meldrum & Fewsmith study, 1979
McGraw-Hill Research Laboratory of Advertising Performance Report 5262 New York: McGraw-Hill, 1986.
Forbes.com
knowledge.wharton.upenn.edu