Canadian Business Leaders Are Bullish On Social Media For 2009

I’m not sure which angle of this story is more compelling. Is it the fact that Canadian business leaders are so enamored with social media or is the real story about the ongoing erosion of attention, influence and money being sucked out of traditional media? No matter which angle you look at it, one thing is clear, social media’s time is not coming, it is now!

“When business leaders are forced to look long and hard at how they spend their marketing dollar, they’re recognizing the value of investing in social media. Canadian marketers appear to recognize what our clients do – that social media is no longer ‘the next big thing. It is now the thing.” - Keith McArthur, Principal of com.motion

Keith’s statement comes via the release of the latest ‘com.motion-Pollara Social Media Barometer’ poll which offers a sneak peek into the minds of Canadian business/marketing leaders in an attempt to predict media buying and consumer usage patterns for 2009. The results of this latest poll clearly demonstrates how pervasive social media tools have become in the lives of Canadian consumers and confirms what we inherently assume, that companies and their marketing budgets are shifting to where the consumer attention is going.

• Two-thirds of Canadians (65 per cent) who use social media say social media is an important tool for developing, maintaining and nurturing friendships, up from 52 per cent a year ago.
• Two-thirds of Canadians (65 per cent) who use social media say social media tools are important for learning about products, services, organizations and brands, up from 59 per cent a year ago.
• Canadian business leaders say it would be a mistake to cut back on social and digital spending in tough economic times, with 7 in 10 recommending increased investment.
• Nearly four in five Canadians (79 per cent) say they have used social media tools. That’s up from 71 per cent a year ago.
• Despite the economic slowdown forcing marketers to modify their spending, 82 per cent of Canadian business leaders and senior marketers say they will spend as much or more on social media in 2009 than they did this year. That’s more than for any other marketing communications discipline…

Not long ago it was believed that half of all ecommerce dollars started with a search. That number may very well be even higher today, but social media is fast becoming a key influencer for consumers when making purchasing decisions. More and more consumers are sourcing their social networks for opinion and recommendation before making purchasing decisions. Essentially, this is making company websites less valuable and instead putting the value and onus on brand representatives to seed the information about their products and services throughout the social media landscape.

A recent study called ‘The Impact of Social Media on Purchase Behavior’ by research firm OTX on behalf of DEI Worldwide confirms this marketing reality.

They found that 63 percent of consumers would like to share their opinions about a brand or product with a representative, and 67 percent are likely to pass along information from a brand representative to other people.

More than half (57%) of consumers are likely to take action based on information from a brand representative, such as buying a product or shopping at the retailers.

“62% of consumers responded that information from a brand representative would be more valuable than advertisements or promotional materials,” said Lou Cuming, chief operating officer of DEI Worldwide.
Social Media Influencing Purchase Decisions

Despite the rough economic environment, social media continues to be a bright spot on a dimming tech landscape and is poised for more growth and mindshare from businesses and consumers alike in 2009.

Related News:
Canadian Business Leaders Shift Marketing
Spend to Social Media in 2009
New Research Supports the Value of Brands Engaging Directly with Consumers Online

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