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Rebuttal to BusinessWeek from a Social Media Snake Oil Salesman

BusinessWeek recently published an article titled “Beware Social Media Snake Oil” about self-proclaimed social media experts who don’t deliver on their marketing promises or, worse, actually do more harm to their clients than good.  The article has prompted a number of responses from the social media blogosphere, including those from David Armano and Mitch Joel and Jordan Kasteler.  A while back, I wrote my own list of questions for companies looking to evaluate social media marketers and avoid the snake oil salesmen.  However, I wanted to make a few points defending social media marketing gurus, who I think were unfairly critiqued by BusinessWeek:

1. Measuring the ROI on traditional media is just as, if not more, difficult than with social media. BusinessWeek writes, “Consultants often use buzz as their dominant currency, and success is defined more often by numbers of Twitter followers, blog mentions, or YouTube (GOOG) hits than by traditional measures, such as return on investment. This approach could sour companies on social media and the rich opportunities it represents.”  The implicit argument is that traditional marketing has great ROI tools.  In many cases, however, this simply isn’t true.  During my fourteen year stint in the broadcasting industry, I worked for five different radio stations (and four different broadcasting corporations) across the country.  I can assure you, the radio industry does not have an accurate way to measure the number of listeners it has, let alone measure what those listeners might be buying and why.  Radio’s Arbitron ratings system is riddled with problems, starting with the fact that the sample size is so small that a single person can wreak havoc on the measurements for an entire market.  Considerable effort has been made in recent years to adopt a more “scientific” ratings system with the introduction of a tool called the Portable People Meter.  This has been so fraught with problems that radio companies refused to use it at first and the FCC launched a probe into the new system.  The same is true of television.  Likewise, how do you measure the amount of people who purchase your product because they saw it on a billboard or in a newspaper?  The direct mail industry has increasingly turned to the internet through the use of tools like Personalized URLs in the hope of demonstrating ROI, to some avail.  Every industry has its own set of measurements, and with very few exceptions, these metrics actually measure various forms of “buzz” but are deeply flawed as a tool for determining real ROI.

(See this article on comparing traditional media measurements to social media measurements.)

2. Any marketing and media can be misused. BusinessWeek cites a number of examples where the use of social media has resulted in negative consequences, from a poorly written Motrin ad to a comment about a town being racist.  But to blame the medium for bad content is literally blaming the messenger.  Is there any reason to believe the Motrin ad would have been received better if it had been aired on television instead of the web?  Certainly caution should be taken with social media; you should always think twice before broadcasting any message out on behalf of your company.  And yes, it is much easier to broadcast out a message (bad or otherwise) with social media than it is with traditional media, but that’s the trade-off: The upside to social media is that any idiot can do it.  The downside is that any idiot might do it.

3. All social media experts are self-proclaimed. Let’s face it, this is a new field.  I’m a self-proclaimed social media expert and so is everyone else out there.  This field is so new that there are no university degrees offered in it; there are no certification program; there are no standards.  Yet.  That’s not the fault of the the industry or the people in it, it’s simply the nature of the beast.  Over time, this will change.  In the meantime, that’s not an indictment of the industry.  Einstein didn’t have a degree; that doesn’t mean he wasn’t an effective scientist.

4. Social media tools are very new. It is, as the article states, like the Wild West.  Frankly, that’s what’s so exciting about it.  Twitter was introduced to the public only two years ago.  Facebook fan pages for business have only become truly useful in the last year or so.  WordPress plugins that allow content to spread over the internet, such as SexyBookmarks or the TweetMeme button, are very new.  One of the main reasons there are no great metrics of the media yet is because it’s changing all the time.  As soon as a case study is written using one tool, a better tool is introduced.  But the fact that this marketing method is rapidly improving is not a reason to dismiss it.

5. Social media gurus are very new. Because the rise of these tools gave rise to the the gurus, social media marketing companies are very new.  Case studies may help separate the wheat from chaff, but many may not have built a portfolio of case studies yet, or those case studies may quickly become outdated due to emerging technologies.  It may be more useful to look at the background of the social media marketers.  BusinessWeek dismisses most gurus as “refugees from the real estate bust” – a claim which they failed to substantiate or qualify – as if we had gone from flipping houses to giving Facebook seminars.  I suspect many gurus actually have backgrounds in either technology, marketing or media (like myself).  In any event, it does not logically follow that by indicting somebody’s background you thereby also indict their ability to produce results.  Social media is new, so naturally these people were doing something different five years ago.

6. Social networking is like networking in the real world. At my seminars, I am constantly asked about the ROI on social media marketing, and my response is always the same: Social networking is like networking in the real world.  Is there a direct correlation in sales?  No.  But the more you do it, the more you get out of it.  It’s impossible to tell if today’s conversation will lead to a sale from a friend-of-a-friend six months from now (and thank God! How boring would life be if our every action could be reduced to a numeric formula?).  But the fact that it can’t be measured precisely doesn’t mean that it doesn’t have an effect.

At the end of the article, BusinessWeek warns of a backlash against the budding social media marketing industry that could kill it off just as it is becoming truly valuable.  Ignoring the fact that the author just spent the last sixteen paragraphs perpetuating this backlash, the blame is laid at the feet of the social media experts.  They need to “shift the focus from promises to results” and “flush out the snake oil.”  Implicit in this statement are two premises which I reject: 1) the focus is currently on promises and (2) the industry is rife with ill-intentioned snake oil salesmen looking to scam people for a quick buck.  In fact, many social media experts rose to prominence precisely because they railed against the lack of results delivered by traditional forms of marketing.  Yet here is a call for the social media community to turn against its own.  While I think that a certain degree of self-policing is valuable, I don’t think inciting people to ‘root out the traitors in their midst’ is particularly healthy for a fledgling industry.  In short, social media experts should aim to raise the standards amongst their peers by helping each other and spreading knowledge, not conducting witchhunts.

  • The only value Newsweek's article provided was that it gives us all something to blog about. If any prospects read it then maybe it will help them screen the agencies they choose, I doubt it though.
  • First and foremost I'd like to extend a thank you for taking the time to address a very one-sided writing in BusinessWeek.

    Secondly, bravo! Very well written rebuttal to the artical that generated a "buzz" on the print side of the media world. You address each point with rational perspectives and illustrate nicely the reality of marketing in general.

    I'll be certain to share and point eyeballs here for further review.

    My Two Cents...
    twitter.com/JamesB2B
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