Will Social Media Replace Traditional Marketing?

Social media is on the tip of most every B2B marketer’s tongue these days. They’re wondering which activities they should be participating in. “Should we be blogging and tweeting?” “Should we have a Facebook page?” “What about LinkedIn? Should we be there too?” These are typical of the types of questions that are heard whenever new techniques are introduced.

Laura Ramos of Forrester recently published the 2010 B2B Marketing Budgets and Mix Trends Research. The study looks both at marketing activities and how the marketing spend is split amongst those activities. Of course, it’s no surprise that Forrester finds social media to be the hot new marketing tool.

Looking at B2B social media efforts in 2009, the study shows:

• 68% have set up group pages on social networking sites
• 55% use Twitter for marketing
• 49% are active with corporate blogging (up from 32% in 2008)

While these statistics are interesting, even surprising in some cases, she cautions that they represent what marketers are doing—not necessarily what is working. In fact, she says that, on average, fewer than one in five say social media has been highly effective for branding and lead generation. What isn’t defined is the term “highly effective.” But I think the point made is that social media tactics still have a ways to go before they produce the returns of more traditional marketing tactics such as e-mail, search marketing, and inside sales.

Forrester’s 2010 study did show that e-mail, search marketing, and inside sales were the only tactics to show steady upward trends in both branding and lead generation. She states pretty strongly that marketers must get these right before adding social media to the mix.

As for marketing spend, most marketers cut spending across all activities, and their 2009 budgets looked the same as 2008. Not a huge surprise given the sting of the recession. She mentions that while trade show activities are down, these types of events still take up an average of 20% of the marketing spend. This is followed by traditional tactics like print ads, executive events, direct mail, and PR, which consumed between 10% and 13% of the budget.

Boiling this all down, she advises marketers to rethink their marketing mix and take bigger risks when allocating marketing budget for online efforts. She says that even though digital and social media efforts will not overtake traditional outbound communications anytime soon, marketers can no longer ignore the shift as customers move more into the social media space.

Personally, I expect to see even more of this marketing shift as 2010 sees a lift out of the recession and business returns to a (new) normal. Also contributing to this shift will be the increased ability to measure and see positive results. Something that has been slow to come.

What does your company think about social media marketing? Have they dipped a toe in the water? Have they seen positive results? Love to hear from you!