Steve Matthewson: Find Value in Social Media

Many recent studies confirm the widespread social choices in social media and how businesses value their fans, followers, and social media experts.

Respondents in the 2011 World Newsmedia Network Innovation Study were asked which platforms could be opportunities for their organisations in the next five years. Social media emerged as the single most important issue, ahead even of investigations into payment models for digital media, which have become a central preoccupation of many magazines, newspapers and websites around the world.

When it comes to subscribers, also known as followers, The Financial Times content monetization strategy is that it helps to maintain a relationship with registered users, to get them involved and find out what they expect out of the company, as well as feedback and what kind of improvement they’d like to see with the products or services that are being offered.

According to the study, the value of the data generated by and linked to social media accounts and activity is a key factor in enabling firms and businesses to differentiate themselves and segment their markets, if they have more than one. This is arguably a necessary condition for them to adopt a strategic position in the first place, as it is in fact a strategic tool.

Last but not least, the relatively low cost of investing in and running social media accounts and their tools either through an inhouse expert or through contracting media firms, is almost a necessity for businesses to continue growing their business. Given the potential returns, this could also help investors in media firms grow in leaps and bounds.

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