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    Tuesday, 23 July 2013

    Social media has limited reach...

    The key driver of brand growth is penetration: having as many people as possible using you at least once a year. Loyalty measures, such as frequency of purchase, are actually similar between brands in a given category. Therefore, the key to growth is reaching as many people as possible, especially light and non-users, to drive penetration. And this is where social media such as Facebook and other advertisement media has serious limitations. Our consumer research shows that over 80% of people were already using a brand before they started interacting with it on social media, with less than 20% new users. This means social media has a limited role which we have to measure for our business.

    In driving penetration of your brand as you’re talking mainly to existing users. And if you think you can make them more loyal, you are fighting the facts of brand growth: loyalty levels across brands are similar in a given category. This means that trying to grow share by increasing loyalty is a losing game..

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    Item Reviewed: Social media has limited reach... Rating: 5 Reviewed By: Vinayak Mehra
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