5 reasons social media is a waste of marketing dollars

I was actually really excited to read this article but honestly found it a little lacking. The points through the article make sense, from a very tunnel visioned perspective, but really the success and failures of SM campaigns should me measured solely on how they are executed.

Social Media will deliver exceptional results for some things, and come up lacking for others. It is the same as any medium that marketers / advertisers use. Major Brands that use SM as a method of remaining top of mind, of to increase brand awareness are setting themselves up for failure right from the start. With all of the examples listed in the article, all of the intended targets would have already known every message that was broadcast.

The Old Spice campaign was hugely successful in the fact that it spread organically. If there was a good message integrated OS would have seen results, because they got the impressions. The problem wasn't the overall strategy though, but the development of the tactic. It simply lacked reasoning to back the call to action.

I will say the last point in this article was bang on, but it is unfortunate that it countered the validity and almost contradicted the rest of the article. I am still glad I read it though.

I'll start with an apology for my pissy attitude, but the link-bait headline, straw man arguments, and over-stated rhetoric in this article rankles me.

First of all, brands aren't "ideas", they're experiences. Companies/products/services that provide the best experiences win in their category. As consumers, we make choices based on our own experiences. And sometimes based on the experiences of others.

Second, don't blame the tactic. Blame the tactician. There's nothing magical about social media - just as there's nothing magical about :30 spots, print ads, POS displays, etc. If you're not achieving a business goal in a measureable way, stop doing it.

Third, the idea that people don't talk with brands is patentedly absurd. You never spoke with a flight attendant? A customer service rep? A sales person? THEY are the brand, more so than any :30 spot. Social media is just another means to get an answer, to get a deal, to offer a suggestion. And although we don't make "friends" with brands, we "like" some brands.

Don't get me wrong, I agree with most points made in this article. But manner in which they're made rubbed me the wrong way.

Great article and I'll add something. I'm author of the business/academic book "Marketing to Moviegoers" and I count just a half dozen THEATRICAL films that became successful with online-centric ad campaigns. That's out of around 8,000 films since "The Blair Witch Project." Worse yet, you'd think smallish indie films would climb social and online media to success but fewer are hits than ever. Yes, one can point to bits of success here or there, but online (I'm looking even more broadly than social media) is no game changer, so far. It's counter-intuitive. I expected more.

Jonathan you are so on target with this. Thanks for being willing to mention that the Emperor has no clothes. Most in the industry just continue to fuel the fires of Social enthusiasts with clients money. Branding is one thing, selling is quite another.

I'm in the music business, and we've known for quite some time social media isn't really that helpful when it comes to sales. We know there's only a 2% "click through" rate for ads REGARDLESS of who places the ad or what type of business it's for. Myspace has failed because Murdoch tried to turn a profit,and people fled to Facebook in droves to escape the ads and the obnoxious bands. People don't go to social media sites to make purchases,they're there to SOCIALIZE! If Facebook ever goes public and tries to make a profit,they'll meet the same fate as Myspace did. Businesses don't realize that Myspace and Facebook have the same business model as newspapers and magazines; they have to sell advertising to survive.When Facebook increases their advertising, (and they're going to have to to turn a profit) the same people that left Myspace will leave Facebook. 99% of the links my friends post are to a video they like on Youtube. I'd like to know if Old Spice's video popularity translated into new sales.I didn't switch from the deodorant I use even though I found the videos amusing.When was the last time you visited Facebook to make a purchase?

Like most things, the answer falls somewhere in the middle of this discussion.

I'm curious then, what you propose companies do, in the wake of the current social media boom. Postpone all efforts until further notice? Stop using social media to engage, and instead just return to one-way ad broadcasting? Delete all social media accounts period?

As a social media-junkie, and young consumer, I feel like the communication type you advocate has become largely obsolete with the advent of social media. At least online, consumers no longer respond favorably to flashing messages in their face about free deals and offers, because reputable companies are no longer the ones offering these. Rather if you take a look at the top ten brands (http://news.cnet.com/8301-13506_3-20058819-17.html) most of them are highly engaged using social media. I understand that sales is the bottom line of any company, but sales isn't driven solely by advertising. Now, more than ever, it's driven by popularity and reputation, among other things. And for anyone who has a Facebook or Twitter feed, brand popularity and reputation are heavily impacted by social media.

I fail to see how you disentangle the potential causes of Old Spice's sales spike, in order to conclude that social media had little to do with their success. In fact, I'd argue just the opposite. Old Spice didn't increase their Twitter following 2700% just from issuing a few extra coupons. Old Spice didn't become the #1 body wash brand for men by just creating clever commercials. They did these things by combining traditional one-way advertising with the engagement that social media facilitates. By creating dozens of personalized videos, resulting in an insane amount of impressions and youtube channel views within a ridiculously short period of time.

I don't disagree with you entirely. There is still a time and a place (and a demographic) for traditional advertising. But for many consumers, especially for millennials, social media is a critical tool that drives brand attitudes and reputation, ultimately resulting in sales failure or success.

I agree with your focus on brand purpose in social. The challenge is that original purpose of social was that people could spend time with people not so that brands could sell products to people. Social by design really does mean people for people. It is why facebook has grown so fast. Brands now want in as that is where their customers are. All the "failures" you mention may also be seen as not failures at all but solid head starts in building social relationships by innovators who are further along in this new sales environment then their competitors.

Social is not a direct marketing platform, it just doesn't work that way no matter how much people wish it did. So... how would you sell... advance an idea... get people to move to your POV... try your product... at a cocktail party, at a class reunion... at a family dinner? You can look longer term... I know that is hard for many of us... and build relationships so when people are in a buying position... they buy you.

According to facebooks most recent marketing guide, you can use facebook to increase purchase intent, Generate awareness, Drive preference and differentiation, Increase traffic, Build loyalty and relationships, and Amplify word of mouth. All key parts of a sales process. How brands execute on these will determine their success across most all social spaces. These are all parts of a brands sales purpose.

Just shouting sales, sales, sales is about as distracting as shouting theater in a crowded fire. Using NY Post headlines about the social sky is falling gives ammo to those trying desperately to save their old budgets. You have a great writing style... maybe you can go into more detail about how you would you use socials "incredible tools and opportunities" to sell?

It's great to see someone apply traditional advert thinking to social media. Conversations like this help the communications industry and help us set back and re-think some of our work.

I do agree with some points though I disagree that the brands mentioned (Old Spice, Ford, etc.) were failures because they didn't move sales. I've seen tons of good and successful traditional media efforts NOT move sales but for other factors were successful. The same goes for social media. There are just too many business and marketing components at play. Also, I social media is really one touch point of many to consider as an integrated effort so it can't be expected to soley move sales.

For a staunch brand Old Spice, perhaps the company is ecstatic to have a young generation sharing and talking about their product. That in it's on right is likely successful. Perhaps Old Spice will add a 'hard sale' message (@ another touchpoing). Additionally, suppose a brand is inferior to other brands (smells bad, stains clothes, etc. ) and if that is the case no message will help. Furthermore, in support of social media, invaluable insights can be had from simply listening to social which can't revealed in other ways.

Just a few thoughts but I do like the article.

~ Wes

Excellent article on all fronts especially the customer service experience. I never really thought about the conflicting trends at work that you point out but it's true - firms make dramatic cuts to their workforce and don't expect it to adversely affect the customer experience. Of course, how could it? Firms say: we've improved the bottom line which has nothing to do with the drop in sales and lowered revenues. It has to be sales and marketing's fault and that new social media whatever it is their experimenting with. Wow!

Best. Article. Ever,

Great article ! I have been fishing in these very same waters and it is crazy to sell but not be selling, how do you do that, why would you do that?

I notice that younger people don't click adds but older people love it when you point them at the best deals where they save money and get better value.

I feel what is more important is to provide your customers with a good product and when you disappoint acknowledge it, fix it and thank the "friend" for showing you the area where you can improve or in a positive comment, what more you can do to improve the experience even more.

Thank you again for a great article!