Two Views of Social Media: Revenue Generator vs. Marketing Expense
Wednesday, July 22nd, 2009In the most recent episode of The New Mediology podcast, Nathan and I discussed two opposing views of social media. One view looks to social media solely for making money. The other view looks at social media for marketing. The big question then, is this: is social media for business primarily for revenue generation or a necessary (or unnecessary) expense?
The difference in these two perspectives is not whether or not revenue is important. Both would agree that it is. Rather, it’s the way in which they use social media to get to the revenue that changes based on the perspective. The “solely for making money” view is only interested in how the tools can be monetized very quickly. This view tends to not have the patience or persistence needed to really begin seeing social media work.
People with the view that social media in business is more for marketing know that they must first understand the rules of engagement, the culture, the techniques, methods, and tools that are out there. They realize that it’s just as important to know what you’re doing and why you’re doing it. They see this investment of time and energy as an expense that will later return in revenue.
Both models of social media exist, but I think it’s wiser to take the long view of social media by adopting the mindset that it is going to be an expense first, but the revenue will also come in time. There are two many cases already to prove this. Just as Scot or Jeff.
You can listen to the full discussion on this topic on the podcast. It’s available to listen online or in iTunes.
