Social media’s big changes and how you can position yourself during the next 5 years.

We are living in interesting times, and they are getting more interesting every day. What is particularly unique about this era that we are now entering is not the size or scope of the changes involved, but a)The fundamental nature of those changes. b)That these changes are happening in more than one very important sector c)That the changes in one will, and have already, resulted in the deaths of once invincible businesses. These exits have created openings that need to be filled. The model is changing and it is essential to recognize where the new gaps are, what needs they represent and how best to fullfill those needs.

There are two main areas where these changes are taking place, they are essential to modern civilization and their delivery mechanism is now radically shifting. The first is money, the second is information. I will talk about information in this post and leave money for a time or blog designed for that topic.

The death of newspapers has coincided with the emergence of a wider variety of information sources on the web. While the internet is more convenient and increasingly portable as a news source, an argument can be made that another factor behind the demise of printed media is that the content has been found to be either lacking or too far removed from the source. Many print publications have been providing commentary rather than first hand reporting and this has disclosed the idea that such writing is easily replicated by nearly anyone with a wordpress account. The result is that people are spending more time reading and commenting on the work of their peers than they are engaging with the opinions of experts.

The opportunities that will emerge:

Smaller, better targeted news sources (What is currently happening recent changes and developments)
The emergence of more comprehensive and specific information sources
The continued differentiation between news and information.
Sources of resources will start to emerge. That is, for example, components for web development. Research data, public domain content
The large media outlets will continue to utilize the internet as a delivery system, this represents more opportunities in design, advertising, content development and engineering.
Marketing will not be a construct defined by an ad agency, but a response/participation in the ‘geist’ of the times. Every day, new viral videos come out, topics are discussed and attitudes are developed. Sucessful campaigns will be marked by the ability of the advertiser to sucessfully take part in that ‘geist’ or dialog and add value to the discussion. Authenticity is become a very important asset and a means to differentiate a company that is providing an experience beyond the physical product. Those that do not will be seen as less transparent and stricly profit/cost savings driven. Consumers will start to expect a dialog from the people they buy from as well as a community with whom they can share experiences.

Customer service will not be reactive, but proactive. That is, CSR can use social media to get honest, feedback before problems arise. The amount of market research and customer survey data that can be collected from various user forums is huge. Efforts to utilize this information are currently quite primitive.

Small players are in a great position to take advantage of these opportunities because the physical tools required for this are minimal while the value that someone can add is limited only by the myriad ways in which data can be read.

As mainstream media outlets move to the internet, the volume and complexity of their advertising will explode.
The types of developments that are likely to occur:
Web-based mini games
Web series, accompanying social media and lifestyle for which product x is a perfect fit
Video with embedded ads, and other interactivity like polls
Avatars, logos bling thats is sponsored by companies
Online clubs and organizations based on products becoming a rich source of consumer data
mining the forums of other companies social interaction, to locate their consumer sentiment
Increasing fidelity in online video and sound will drive higher quality production and more elaborate media.
In all of this smaller companies with big imaginations have a chance at moving forward quickly.
Increasing awareness amongst users of their own time, the phrase surfing the web may become obsolete, since people will have an increasingly firm idea of what their objectives are before turning on the computer.
Methods to track popular stories, thus enabling the news source to better determine what kind of story to write.
Due to the specific targeting, large companies will have to either a)Hire and maintain large numbers of specialists b)Outsource these specialists c)Remain generalist, as there will still be this interest.
For blogs, small companies and niche media outlets this change represents an opportunity to meet a demand. This kind of content and social targeting will lead to higher conversions and more effective advertising because the promotional activity will be able to pursure a more granular differentiation between products and companies. This means that a wider variety of goods can be created for more specific needs. This global economic situation will temper this urge to manufacture a massive array of products. People’s purchasing habits have been affected and this lesson in personal finance will not soon be forgotten. This means a more frugal customer who will spend more time researching a potential purchase based on the following criteria:

Whether the product truly suits a given need or is just an impulse purchase based on image or status.
The quality, durability and lifetime of relevance. That last point means, how much practical use can be obtained from the product beyond it’s ‘new car smell’
Support, accessories, the price of those accessorie and ease with which those things can be obtained, as well as the cost of those items.
The community surrounding the brand or product. Is it engaging? Does it add to the experience of ownership? Does it add value to the product itself?
With the increasing number of bloggers, ownership of a product and commentary on it can drive traffic. What is the potential of this?

As can be seen by Apple, products can become cultures. This lesson is likely to be either picked up or stumbled upon by companies as they struggle to manage costs and take more frugal approaches to promotion. Part of this will be to manage and utilize information from social media, since doing so is relatively cheap and very well targeted. If done correctly, much larger thand more specific samples can be taken.

Companies that can analyze such data or creatively respond to it in ways that produce increased interest will come into high demand. The age of ’saturation bombing’ type advertising is coming to an end. While this approach required creativity and analysis, a web based approach will require even more. Because of the wide and varied distribution of targets, it is unlikely that large companies will be able to manage many such accounts in a generic manner. At present, advertising is based on audience size. Soon, however, advertising costs will be based on more tangible results such as targeting, interaction and quality of feedback. All of these things will be measurable. The more social a campaign is, the more data proving it’s effectiveness will become available. This is real value to the organization that is actually selling a given product.

Social media, companies that can show these kind of results will be in demand. In effect another link in the chain leading the customer to purchase will appear. That is, advertising companies may eventually delegate social interaction to another company while they focus on their advertising competency. This will allow for a social media industry to grow to dimensions as large as ad companies. They will compliment each other and frequently work together to manage a products presence in the market place.

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