More reasons why the SNS trend can be a bubble waiting to burst.
Wrong values and unqualified ROI
From the top of my skull, that's the very first thing coming in, and the topic about which I am the most vehement.
Wrong values because now everything seems to be quantified by either the amount of followers, likes, or facebook friends you get.
The numbers have to be huge, since the bet is "if you are visible to many, some might buy"; unfortunately I barely believe in that approach, and I'm probably not the only one.
It was probably true a couple of years ago, but now so many have jumped in the bandwagon it derails at every turn, being visible to many means taking part in an infomercial flood invading too many time lines.
Now, I see a huge bunch of consultants and experts wanting to jump at my throat, screaming that the results are quantifiable if you know where to start.
Indeed they are. We hear from the revenue generated from online campaigns. Generated by the ads agencies.
The ROI of the actual advertisers though, is unknown.
I'm not talking about isolated cases, I'm talking about a global survey and real figures; what I want to read is " n% of of the companies advertising on Twitter experienced a ROI of n% during the last 6 month"
Too much snake oil
I'm not saying that every SNS consultant is a fake, but many are still pretty inexperienced, or plain useless.
As a result, many companies are lured into thinking that:
- They can sell online without previous authority (not everyone is called Starbucks)
- They can sell absolutely everything online ( PR is different from sales)
- Having lots of followers/likes/friends is a proof of success (you can buy followers in some forums)
Then, confusing talks about the results come into the game, and mess it up a little more. Take this article for instance.
What do they mean by "countless donations", "increased their traffic by 300%" or "sales bump of 20%" ?
If I have 1 visitor, having 3 by the next day will be a 300% increase. Be specific!
What kind of trust do you want to build with these stats? Seriously?
What is economy based on, by the way? Oh yeah, trust.
The balance is fragile
Platforms, users, advertisers and third parties are tied in a very tight way.
The platform depends on the users, drives its traffic through third parties, and exposes it to the advertisers.
If the platform fails, everything is muted
If the users get bored, everybody loses interest in the platform (no content generated)
It third parties are not competitive enough, users will get bored (but then again, what if the platform fails them?)
If the advertisers stop advertising, the platform can't maintain itself (and in the other hand if the "lesser" and noisy ads smother the users, they will get bored)
The not so funny fact being that Facebook and Twitter are in a position of quasi monopole. There is nowhere else to go right now.
Does it mean that investors and companies will keep on pumping in money and effort until someone panics? I hope not.
The topic is being discussed
As I said earlier, economy is based on trust.
You'll always find a base of skeptics being grumpy about mostly every topic you can imagine, that's given. But in the middle of the current SNS fever, articles about disappointments and doubt about the real value of the system (like this one) are becoming more common, and that's not really a good sign.
What can we do so it doesn't burst?
What I have in mind is pretty simple. Diversify, leave more space to the competition, stop advertising stuff no one care about, and start treating social media like, yes, media and not like some universal solution to all advertising problems.The internet is not limited to Twitter and Facebook, it is a mine of innovation, it's time to remember it and get back to making stuff.
Burstingly yours.
Danny.

