Yet a study conducted by Altimeter Group shows the level of hype continues unrestrained. A third of the 140 social-media strategists interviewed spend between $100,000 to $500,000 a year on social media marketing. This suggests that social media is worthy of a high budget, but not as cost effective as you might think. The ROI of social media campaigns is largely unknown.
Like most companies, LinkedIn, the fast growing professional network, employs a clear social media marketing strategy in line with its well established
online reputation. One of LinkedIn’s successful social media channels is its blog where employees at LinkedIn post specific information they've spent time developing, but which failed to make the cut of the company's PR campaign. It has become an unexpected success turning into a resource hub not only for LinkedIn users, but also journalists and other bloggers to discuss current issues making conversations and feedback more immediate. LinkedIn has used its blog to implement a more simple and effective communications strategy than traditional media outreach allows by creating an online forum accessible to a number of different stakeholders. However, in its work up to IPO the online network’s membership base has grown over 160 percent in the last two years to 150 million users , with the number of corporate customers increasing by 450 percent in the same period through investment across marketing disciplines. The decision to use a variety of channels indicates the company’s recognition that relying on social media alone cannot achieve the level of success desired.
LinkedIn's marketing campaign has to maintain current users whilst enticing potential new customers – or “product” – to become part of the ever growing online social media boom. That oft quoted “If you’re not the customer, you’re the product,” is most clearly demonstrated by LinkedIn. Unlike other social networks, such as Facebook or Twitter, LinkedIn has cleverly defined users who are true customers – those that spend money with LinkedIn on premium profiles and advertising – from those who are “product”, merely signing-up to benefit from the free services that LinkedIn offers. One of the most valuable customers for LinkedIn are recruitment consultants. These customers want to benefit from LinkedIn’s “product” – all those people who put all that CV information up online. Hence why LinkedIn exhibited at Recruitment Agency Expo in February 2012. (See the pic.)
By exhibiting at the Recruitment Agency Expo trade show LinkedIn’s marketing team demonstrated that traditional marketing cannot be ignored in spite of the hype around social media. Contrary to the array of extravagant, eye catching and expensive stands at trade shows, LinkedIn’s presence was simple, honest and understated. Consisting of just a couple of white pop-up stands scattered with the company logo – costing no more than £200 each - a camera, a laptop and a stool, the multi million pound company’s minimalist stand intrigued passers by. It didn’t have fancy banners, flat screen TVs and an extensive floor space as you might expect of such a large and innovative company, but what it did have was a clear, effective and extremely simple stand that did exactly what it was supposed to do – generate sales leads for LinkedIn.
Visitors could have their photo taken against a backdrop of the LinkedIn logo and set up an account there and then. The LinkedIn logo is then in clear view on the person’s profile image for all to see. However the person who looks at their profile picture most frequently is the person whose profile it is. This reminds that person that LinkedIn offers services to recruiters whenever they check their profile. LinkedIn’s decision to exhibit at the Recruitment Agency Expo enabled paying-customer lead generation from the range of attendees from recruitment firms, rather than just gaining individuals that simply benefit from the free services that LinkedIn offers. They acquired customers, not just product.
Trade shows provide exhibitors with the opportunity to network, promote products and services and learn more about their target audience’s needs. A study outlining the value of trade shows claims that 75% of attendees have a personal agenda with a good idea of the companies they want to see, whilst 46% of executive decision makers make purchase decisions whilst at a show. Equally trade shows enable exhibitors who attend to extend their promotional reach beyond the footfall of the event by liaising with the journalists. This enables a business to share information about its products and services, increase its standing in the media and raising its profile amongst consumers or relevant publications who didn’t attend the event.
Cynicism about the value of trade shows is rife and online networking through social media is often touted as a replacement for industry events. But social media isn’t replacing other marketing channels; rather it provides an additional communication avenue that is most successful when used in conjunction with more conventional methods. Kay Luo, director of corporate communications at LinkedIn, says its outreach strategy includes both traditional and social media including PR, advertising and trade shows.
Interaction with customers remains key and it’s important that marketers remember that their advertising must be effective rather than expensive – a mantra effectively demonstrated by LinkedIn’s modest but effective stand at Recruitment Agency Expo. Strong effective offline marketing is just as vital as newer techniques when engaging with audiences, building brands and strengthening the level of trust between company and customer. Companies will always seek to employ the most contemporary marketing methods to grow their business but sometimes its best to take a responsible step back. Effective marketing doesn’t necessarily mean expensive marketing. LinkedIn, the largest professional network has demonstrated the value of offline marketing tactics better than anyone by employing simple, cost effective strategies that have increased its client base and allow it to continuously grow and dominate the professional online world.
