How many businesses really ‘get’ the social web?

Written by Shana Albert on August 15, 2008 – 9:11 am -

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

This Featured Guest Post is by James Duthie of Online Marketing Banter.


Image by activeside

How many businesses really ‘get’ the social web?

Rand Fishkin recently wrote a post on SEO Moz about ‘getting it’. By ‘it’ Rand was talking about the web… and he guesstimated that just one person in every million truly gets the Internet. My first thought after reading the article was that based on Rand’s estimations, there must be a hell of a lot of online marketers out there that don’t get the web (there’s a scary thought for you…). My second thought was that if so few people get the web, which has been widely accessible for over a decade, how many actually get the relatively new phenomenon of social media/ social networking (clue… not many). And my final thought was if so few people really understand social media, how many businesses have their finger on the social media pulse…? The answer it seems, is not many.

When the social web goes wrong…

By now, we can all probably recall the most infamous corporate social media disasters off the top of our heads. Brands such as Dell & Sony immediately spring to mind. But above all else, it’s probably Wal-Mart that sticks out above others as the worst exponent of social initiatives on the web. The two most documented disasters are:

  • Wal-Mart attempted to create its own social networking site targeted towards school kids entitled ‘The Hub’ (ala MySpace & Facebook). However, the project was abandoned just 10 weeks after it was launched due to a lack of usage.
  • Wal-Mart was at it again (along with PR firm Edelman) when they published a fake Wal-mart blog called ‘Walmarting across America’. The suspiciously pro Wal-Mart sentiment of the blog set alarms bells off in the blogosphere and it wasn’t long before the blog was exposed as a fraud.

If it achieved nothing else, Wal-Mart has set a fine example of how not to adopt social media technologies. However, despite the fact the ‘The Hub’ imploded well over two years ago, it seems fellow marketers refuse to learn from Wal-Mart’s social networking mistakes. The Wall St Journal recently painted a somewhat frightening picture of the state of social networks and communities within the corporate world. The key findings, which were taken from a research report developed by Deloitte, include:

  1. 35% of corporate online communities had less than 100 members
  2. 25% of corporate online communities had less than 1,000 members
  3. 6% of businesses spent more than one million dollars establishing their community! Let’s hope these 6% aren’t amongst the 35% of businesses unable to attract more than 100 members to their community!

So what exactly is the corporate world doing wrong when it comes to social media…? Why have 60% of corporate social networks failed to attract more than 1,000 members? The answer is quite simple. They’ve failed to recognise the fundamental principle of the social web - that it’s not all about them.

The social web is about people, not brands or technology!

It seems as if the marketers behind many of the corporate social networks/ communities operated on the premise – ‘If you build it, they will come’… particularly if you make it really shiny. Unfortunately, many have had to learn the hard way that this simply isn’t the case. The fact is that unless you’re Apple, people really aren’t that interested in your products or services. Deal with it. One of the primary features of Wal-Mart’s social network ‘The Hub’ was the ability to generate shopping lists. Hmmm… how many teens do you know that are interested in making their very own shopping list? Not freakin’ many. Wal-Mart made ‘The Hub’ about them. And that’s why it failed.

For the ultimate example of a self-centred social networking initiative, check out David Hasselhoff’s personal social network. Sure… everyone loves to have a good laugh at The Hoff, but does he really think people care enough about him to make his page their social networking home…? You do know people laugh at you Hoff…right…?

Social initiatives can go old school… if that’s where your audience is

I recently wrote a social media strategy practically devoid of technology (some would even say it was positively old school). The strategy was for the Australian arm of a major global organisation, with a budget stretching into the hundreds of thousands of dollars. If I wanted to, I could potentially have sold them on the development of their very own social network. But I didn’t. Because I know that social media is not about the technological platform… it’s about the people.

Instead, my first recommendation was to begin monitoring and participating within existing online forums. Yes… that’s right… forums. How very 90’s of me. But the fact was that a community of over 60,000 people had already formed to discuss this company and their products within online forums. Indeed, they were lucky to be one of the very few companies with a customer base passionate enough about their product to create an online community around it. So… instead of trying to host the conversation, why not just simply join it (at least initially)?

My second recommendation was to establish a company blog. Sure… a blog isn’t as feature laden (or shiny) as a Facebook clone, but communities can form around blogs just as effectively as they congregate on social networks. Just look at Tech Crunch. A blog provides a cost effective way for the organisation to establish a social media presence without spending hundreds of thousands of dollars on development (thank you Wordpress!). And who knows… if the blog takes off we may consider implementing some more advanced social networking capabilities. But that’s the last consideration, not the first. After all, if the audience are happy in forums, they don’t need all the bells and whistles yet.

The social web mind shift

The reason most corporations don’t ‘get’ the social web is quite simple – success requires a shift in marketing methodologies. Traditional marketing principles just don’t cut it in online communities. Amongst the most fundamental shifts in thinking, marketers need to recognise that:

  1. You don’t need to own the traffic, you just need to own the relationship
  2. You can’t control the conversation, all you can do is listen and respond
  3. One size does not fit all, and nor does one message
  4. Actually talking to your customers isn’t such a bad thing. You may even learn something from them.

Until marketers ‘get’ these principles of the social web, it seems we’re destined for more corporate social networks built around shopping lists… or worse… washed up celebrities.


Author Bio
James Duthie is an Australian online marketing expert. He writes on all things social media, blogging, SEO & online marketing at his blog - Online Marketing Banter. Subscribe to hear more of his ramblings.

The People Pleaser 2.0

February 4, 2008 – 8:06 pm

Photo by *sean The People Pleaser 2.0 We have all come across a People Pleaser at one point or another. People Pleasers love making people happy. They seem to ...

26 Reasons Why I Love Twitter - Plus 27 More just in Case

January 24, 2008 – 11:28 pm

A while back I wrote a post about how I just didn’t get Twitter. At that time, It didn’t make sense to me to hear people rave about ...

I confess… I used to be an Uptight Control Freak!!

January 16, 2008 – 9:54 pm

Photo by KoAn I wrote a post on Collective-Thoughts yesterday, "What if Social Media were a Disorder?" And, even though it was meant to be ...

The Uncanny Broadcasting Brain Caught my Brainwaves!!

January 8, 2008 – 11:23 am

(The following story is a teeny tiny made up) This morning as I was surfing my usual Social Media sites I took notice to something that was very familiar. ...

5 Reasons my StumbleUpon Profile Stands Out

January 6, 2008 – 7:41 pm

This past Friday Darren Rowse of ProBlogger wrote a post, Using StumbleUpon to Get on the Radar of Other Bloggers . In this post Darren ...

How to Create Desire in Social Media

December 30, 2007 – 2:29 pm

Photo by sarchi A big Thanks to Dan Zarrella for this wonderful guest post. If we are going to talk about how to create desire with and in social media, ...

51 Favorite SU, Sphinn, Twitter & Facebook Posts of 2007

December 28, 2007 – 12:43 pm

Photo by luc legay 2007 will be ending in the next few days and 2008 will be beginning. It has been an amazing year for me. It was In ...

Merry Christmas

December 25, 2007 – 12:26 pm

Image courtesy of krisdecurtis I wanted to take a moment to wish all who celebrates a very Merry Christmas. I hope everyone enjoys this ...

My Love / Hate Relationship with Social Media

December 17, 2007 – 4:34 pm

Photo by Fabbio I love you so much I hate you!! Or, I hate you so much I love you!! Oh boy, is my head Sphinning!! I keep ...

12 Cool Analogies to Help Explain Social Media

December 7, 2007 – 10:17 pm

Yesterday I wrote a Post on Collective-Thoughts, Wow, Social Media is a lot like High School!! . It is a humorous look at how Social Media ...

Want to subscribe?

 Subscribe in a reader Or, subscribe via email:

Enter your email address:

Delivered by FeedBurner

Need Creative Inspiration? ProBlogger: Secrets for Blogging Your Way to a Six-Figure Income
Find entries :