Time was when online marketing was predominantly about SEO buzzwords and search rankings, and outbound mail shots... Passé!

Social media is the new marketing paradigm, and all indications are that it is here to stay. Now I know I’m not the first to say that, and I don’t propose to simply add my voice here to an already very loud clamour. There is plenty that has been written already on why social media ought to be in every online marketing professional’s toolbox, and even on how to go about crafting and implementing a winning strategy. But what I want to touch upon in this article is what it is about social media that makes it such a powerful tool. In a word, what is ‘social’ about social media?

Social media is BIG

‘No kidding,’ you say! It may be obvious, but it’s worth emphasising that social media is ubiquitous; a Nielsen study in 2010 found that, in the United States, almost a quarter of the total time spent by consumers online was on using social media. Nielsen also found that in the United Kingdom, 74% of Internet consumers were using social media. And with the explosion in the uptake of smartphones and other digital media devices, there are now more users than ever before who are firmly plugged in online, at all hours of the day.

Naturally, this translates into a large, switched-on audience to reach out to. And with the wide variety of platforms and approaches that can be used in concert, the potential for creating a standout online presence with which to strengthen a brand, and ultimately drive sales, is immense.

Social media is open

Social media is available to all. Just about anyone can create content and share it, in a few clicks, with the world at large (witness this corporate lawyer writing a piece on online marketing, for example!). A business that harnesses this creativity can utilise it to amplify its message many times over, at a fraction of the time and resources it would otherwise need to achieve the same spread.

Take the huge number of user-generated gadget reviews and guides on YouTube, for example (check out the staggering number of results for the search string 'iPhone 4 review'!). Many users have built up credibility and substantial followings (such as 'radiogirl83', who at the time of writing, has 702 subscribers), and a favourable review from such a user is a powerful spur for consumers to purchase the products in question – arguably more so than product reviews from established technology magazines and websites.

Social media is inclusive

Traditional marketing is one-way: information flows in one direction from the business to the consumer. Social media, on the other hand, does one better, and then does one better again.

Along one dimension, social media facilitates communication between the business and the consumer, in both directions. It’s not just about the business projecting its image onto a blank canvas and aiming to get as many people as possible to see it; it’s about actually engaging with consumers in an ongoing dialogue, and – more importantly – letting that dialogue shape the business’s product offering and identity.

A great and often-cited example of this is the use of Twitter by the JetBlue airline. By engaging with its followers, JetBlue was able to adapt its service offering to be more in tune with what consumers actually wanted (such as better information on flight schedule disruptions, and changes to baggage handling tariffs). The direct channel of communication proved, unsurprisingly, to be far more engaging than press releases, for instance. JetBlue’s use of Twitter has evolved from modest beginnings into a full-fledged customer service operation, with a team of staffers manning the account and responding to followers’ tweets on an individual basis (even having the kudos to respond – quite deftly, I would add – to a flurry of commentary following on from the Steven Slater incident).

Along another dimension, social media facilitates communication between consumers. It’s no secret that people with shared interests have much to talk about with one another, and this social dynamic is one that readily lends itself to savvy marketing. A business that gets consumers talking excitedly among themselves about its product can reap dividends. The halo effect of a community of eager consumers surrounding a business in the online space will attract yet more consumers – whether they might have a genuine interest in the business’s product, or whether they are just inquisitively wondering what all the fuss is about.

For a salient demonstration of the power of such a community, take a look at the Pandora Facebook Page. With well over 600,000 ‘likes’ at the time of writing, the Page is very much abuzz – with ‘Pandoraholics’ the world over flocking to the Page to share pictures and news, and mingle with like-minded enthusiasts. It is their conversation that is the mainstay of the Page; the vast majority of posts on the Page are in fact from these consumers – and as their posts appear in the news feeds of their friends, they very effectively promote the Page just by interacting with it.

Social media marketing going forward

So what to make of all this? Whatever else may be said, one thing is abundantly clear. Although the social media marketing landscape is still in its formative stages, innovative early adopters are blazing impressive trails. Those who are yet to develop their social media strategies are, increasingly, looking as though they are standing still. Future developments in this arena will make for interesting observation, no doubt.

Finally, a disclaimer... The above is by no means a complete (or perhaps, even a particularly well-written?) analysis of what makes social media so potent – it is merely a distillation of thoughts from someone who has only recently started experimenting with social media marketing. Comments and insights are most welcome!