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Did you know? Currently the iPhone accounts for 23% of Wi-Fi connections, compared to Android (5%) and the iPad (3%)

May 11, 2011

Yes, Even You Should be on Facebook

CATEGORY: SOCIAL MEDIA

Greetings, friends and fellow industry peers. As spring raises its leery head in Central Pennsylvania, I’m reminded of all the pleasant changes that accompany this time of year – shorts, sandals, outdoor basketball, barbecues, no longer having to scrape the ice off your windshield and so much more; it’s beautiful, really.

Our industry is no stranger to change, too. Just this week, in fact, five large things happened within the business community that are likely to shape our professional horizons for the foreseeable future:

  1. LinkedIn agrees to partner with Ipreo, a global provider of financial services intelligence, thus giving the world’s largest professional network a steroid shot of investor relations possibilities.
  2. Apple ends Google’s four-year reign as the world’s most valuable brand, according to Millward Brown's 2011 BrandZ study of the most valuable global brands.
  3. RIM (BlackBerry) surrenders more market share of their mobile platform to competitors Google (Android) and Apple (iOS) at an incredible rate – a 4.5% loss in the first calendar quarter of 2011.
  4. Microsoft suddenly buys the popular video and messaging company, Skype, for $8.5B, making the acquisition the largest cash deal in Microsoft’s history.
  5. The Financial Times reports Facebook will become the world’s largest online display advertising company by revenue this year, overtaking the comparable businesses of Google and Yahoo!.

Whew.

While we’re on the subject, let’s talk about Facebook for a moment.

I’ve been knee-deep in some serious discussions with many industry colleagues on the topic of “Is Facebook relevant for B2B?” for the past three months or so. Though the feelings vary, the dissenting opinion seems to stem from one general idea, that “Facebook is largely inappropriate to the nature of my business.” I couldn’t disagree more. Yes, I am a 30-something who grew up with Mark Zuckerberg’s company when he only targeted students within Ivy League universities. Yes, I update my status approximately 4-12 times per day. Still, no matter what industry you’re in, no matter the nature of your business, Facebook is relevant for B2B.

Let me repeat that – Facebook is relevant for B2B. Three takeaways (with supporting arguments for each) as to why this statement is true:

  1. Even if the Apple brand now ranks atop the global list, does anyone care to venture a guess as to whom the fastest growth in brand value belongs to? That’s right. Facebook. With a jaw-dropping 246% increase, nearly three times that of Apple, Facebook is on a tear to the top. The fact that Facebook now has over 500 million registered users and growing, making it the 3rd largest country in the world if it were one, probably has something to do with this achievement.

    Takeaway – Your target audience, whether internal, external or both, is likely already on Facebook or will likely be there soon. Take advantage of the trend. Communicate with them. Or, perhaps you’d rather your competitors do that in your stead?

  2. Convergence isn’t only blurring the line between “work” and “play;” it’s also affecting the most popular social media channels, too. Consider the B2B favorite medium, LinkedIn, for example. In early 2008, LinkedIn added the Facebook-like functionality of “status updates” to their site. In late 2009, LinkedIn partnered with Twitter to sync these status updates across the two platforms. A few months later, a small Canadian company called “Hootsuite” found a way to integrate the updates across LinkedIn, Twitter and Facebook. Finally, in March 2011 LinkedIn unveiled “LinkedIn Today,” giving users a valid reason to visit the website several times throughout the day for the first time in the company’s history. Very interesting, indeed.

    Takeaway – Convergence further validates that Facebook is relevant for B2B. Just as users are changing their expectations with LinkedIn being a purely professional site, so too are users’ expectations with Facebook being a purely personal one. Expect the mix of both personal and professional to continue. Do you think the rapid increase of B2B “Pages” within Facebook is an accident?

  3. Activity on Facebook is explosive, at worst. According to the company’s statistics, more than 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) are shared each month. Further, there are over 900 million objects that people interact with (pages, groups, events and community pages). There isn’t a social media channel on Earth that can compete with these kinds of engagement metrics, not even Renren, the Facebook equivalent in China (with one-third the membership size of its American counterpart).

    Takeaway – Facebook offers the most engagement tools and reach of any other social media site in existence today. Ask your audience a question. Have them participate in a poll. Post pictures of your engineers hard at work. Upload videos of a customer service representative actually helping a customer. Whatever you decide, the point is universal – to develop a more personal connection with your business. Considering that all business decisions require some level of trust and relationship, why wouldn’t you take advantage of a medium that uniquely allows you to build upon these two critical factors?

So, yes, even you should be Facebook. We are. Won’t you consider it, too?

Now if you’ll excuse me, I need to update my status.

Comments
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  • May 11, 2011 (4:57 PM EST)
    Nancy writes:
    Lance, thank you for addressing this topic. It is especially timely for us. Facebook is a giant it is difficult to ignore.
  • May 11, 2011 (6:32 PM EST)
    Lance Baird writes:

    Nancy,

    Thanks for reading and for your comment! As you can likely tell, I'm quite passionate about this subject; I truly believe in its relevance for B2B.

    Lance Baird
    lbaird@godfrey.com

  • May 12, 2011 (4:31 PM EST)
    Ken writes:

    Well done, Lance! Within your piece focused mainly on company participation on facebook, I particularly liked your bullet addressing RIMM. Although you presented RIMM’s most recently reported decline as sidebar evidence to your over-arching position about accepting social media and new trends, in many ways that single example serves as a dire warning to your readers about what can happen when you do not embrace and adapt to environmental change, virtual or otherwise.

    When looking at RIMM’s stock chart, it is amazing to see the striking sway in the market’s opinion of RIMM’s company strategy – or lack thereof. Going from what seemed to be an organization operating in a Blue Ocean to a fish in a barrel anxiously dodging hungry predators, RIMM’s chart of the last three years plunges downward so extremely that the line graph must be distorted to fit the vertical axis on one screen. To think that their apex price of $144 the week of June 16, 2008 has now turned into a lowly $38 per share is mind boggling. One would have to have an advanced degree in mathematics to calculate the loss in market capitalization over that very short time period. Expressing this in a takeaway as you so aptly do in your writing, the outside world’s opinion of a company matters – A LOT. I would strongly question why any company would not take advantage of communication forums like facebook to help influence those thoughts and opinions in positive and low cost ways.

    Thomas Paine was quoted as saying, “Lead, follow, or get out of the way”. Paine’s message is a popular snippet in many strategic management textbooks. However, the challenge in the technology business is that the street values of these emerging companies inflate so fast that unless you are a major, cash-rich organization the likes of Microsoft, Apple, or Google, your model can be made obsolete by competitors within months if you follow too far behind. So, when discussing technology trends and figuring whether an organization should have an active social media program, it is perhaps more appropriate to challenge Paine’s feelings that following is ever a viable strategic option – and instead adopt Common Sense to avoid the Paine of RIMM’s very public fall.

  • May 12, 2011 (5:09 PM EST)
    Lance Baird writes:

    Ken,

    Thanks very much for your thoughts. Very thorough - glad to see the topic seems to be of such considerable interest to you!

    In response to your comments, I am in complete agreement with the major points you express. Companies of all types, ours included, must be forward-looking if they want to thrive and succeed. This concept does not suggest that all businesses must be *first*, of course; fast-followers certainly have their place in the business world. But if one is to succeed, look forward.

    This principle underlies many of the arguments proposed in my post. Sure, Facebook might not be the best place for B2B to reside; as you know, this argument wasn't my contention. However, given the increasing nature of convergence in just about everything we experience, in combination with the engagement tools and reach of Facebook, I strongly believe any company would be remiss if they didn't have some kind of presence on there.

    Of the many benefits Facebook offers, one of the large ones (one of the founding tenets of the organization, in fact) is to build relationships. Why wouldn't any business want to take advantage of this opportunity?

    Thanks again for your post.

    Regards,

    Lance Baird
    lbaird@godfrey.com

  • May 13, 2011 (2:07 PM EST)
    Beth writes:

    Although I do agree that Facebook continues to expand rapidly (as your numbers show), I would like to point out that it may not be as relevant in some B2B industries as others. For industries who do not see much adoption or work with other countries where Facebook is not popular or permitted (aka China), at least having/supporting a page makes sense, as when it does expand into those areas, you are ready.

    I would say it also depends on the reason to be on Facebook (because everyone else is, SEO, etc) and how much time and dedication the company has for Facebook versus the actual benefits.

    From what I've seen and experienced, it is not that much maintenance if it is just to have a presence. But to be dedicated and use it for solid leads and customer interaction, I think at least one dedicated person is needed for the content creation and interactions.

  • May 16, 2011 (9:46 PM EST)
    Lance Baird writes:

    Beth,

    Great to hear from you!

    I would agree that Facebook does have its share of limitations, especially in places like China or (surprisingly) the U.K., where a recent study indicates that nearly half of U.K. companies have banned access to Facebook for employees while at work. Nearly 50! Incredible.

    You're also spot on in needing to know the reasons to be on Facebook and the need for a dedicated effort in order to do a successful job. Very nice.

    Thanks again for the post!

    Regards,

    Lance Baird
    lbaird@godfrey.com

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