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As Recession Looms, Marketers Turn To Social Media

  • Reuters, Wednesday, November 19, 2008 11:30 AM
More and more marketers are harnessing the power of social media, using blogs, viral videos, and social networks like Facebook, Twitter, FriendFeed and Digg to reach consumers. According to Reuters, the common denominator in their advertising efforts is the high level of engagement that the ads demand from consumers.

The flight to social media comes as big marketers slash their budgets due to the looming recession. According to UBS, global ad spending will fall 3.9% in 2009. "In such an environment, social media could prove to be a cost-effective way to sell to consumers," the Reuters report suggests.

Of course, marketing through social media also has its risks. For example, just as companies can generate buzz through a social media or viral campaign, so too can they generate a backlash if users deem their marketing efforts unworthy, intrusive or offensive. Johnson & Johnson recently learned that lesson the hard way with an ad for Motrin, a painkiller brand, which offended so many mothers on Twitter that the company was forced to issue an apology for the ad on Monday.

Read the whole story at Reuters »

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