by Jonathan Trenn

This is a post I could probably update every three months.

I just was part of a conversation over at Mac Collier’s blog, The Viral Garden. It’s one of the top social media blogs, and deservedly so, as Mac is one of the top strategists in this burgeoning field.

He asks us Is Social Media Overrated? A simple sounding question with several legitimate but complicated answers. He then uses the term “overrated/overhyped”, treating them as if they’re the same thing. I see those terms differently so I guess I’ll now step up to the plate and take a swing at these questions.

To me, social media is quite overhyped while, at the same time, very much underrated.

Social media is in its nascent stages with methodologies and strategies still being conceived. We’re don’t seem to know what it is exactly. We’re battling on ideas who will be in control. While we’re doing that some wonder aloud if social media jobs will be even around. Others say no, they won’t.

The reality is that social media is an immature, yet growing field staffed by evangelists who recognize it’s potential, but, at times fail to see it’s shortcomings.

Too many of us use extreme terms such as “Engage or Die”. Marketing managers hear that and roll their eyes. The fill-in-the-blank or die phrase is overly used and over kill. Many companies have yet to engage and will continue to resist that concept - at least to the level we demand. And, yes, some of them will do just fine.

Social media is overhyped because we’ll often view and describe disparate members of a company’s customer base as being “communities” when they are too dispersed and too disjointed from one another to have a connection…at least at this point in the game. A lot of marketing managers have to deal with a cultural lack of brand loyalty…a lack of loyalty that kicks in before communities can begin. Then is becomes a “what came first - the chicken or the egg” question. Creating a community-like atmosphere could increase brand loyalty, but a vertical often has little brand loyalty to begin with.

We’ve also have to get the definitions of words down. I’ve seen the word community used for anything from the millions of people who visit YouTube to the potential members of a customer base to an actual current customer base itself. We’re all using key terms differently, often thinking that we’re saying the same thing. That’s not only a sign that the industry is not yet mature, it’s also a sign that it’s not well coordinated.

We’ll mistake a growing ability for customers to affect company reputation via online networking as proof that now the customer is in control of the brand. We then find in most cases, frustratingly, that’s not yet true. We can still get ignored. Or screwed. Consider Joseph Jaffe. One of social media’s true visionaries. Delta Airlines, instead of flying him to Brazil, gave him an involuntary tour of various airports in the New York City metropolitan area, along with a keener understanding of the NYC taxi system. They misled (lied?) to him about seating availability and quality…and despite his vocal online protests, they still haven’t made amends. When I told a Delta employee of Joseph’s experiences, the employee replied “Well, we’re the second largest airline in the country…” as if size matters.

We’ll forget that 97% of people out there don’t know what lifestreaming is, don’t have a Twitter account, aren’t reading a bunch of blogs, or have the time to be engaged with by a slew of companies.

We’ll use the same examples over and over (Dell) without looking, or finding, new ones. There doesn’t seem to be many at this point. But they’re out there. Maybe it’s because we’re looking for groundbreaking case studies from huge companies.

Part of the problem is that so often those that are implementing social media campaigns aren’t social media strategists and, thus, don’t have the social media mindset. They’re traditional ad types. That’s why Forrester found that 15 out of 16 social networking attempts they examined didn’t make the grade.

So there hasn’t been a series of high profile cases in which there’s been significant success stories of social media campaigns that were actually run as social media campaigns. I’m sure they exist, but they don’t get that much attention. (Note: I’m reaching out to two or three communities to interview them about their strategies and successes.)

Gavin Heaton, in commenting on Mac’s post said:

“I think one of the biggest challenges is that most social media efforts are performed in isolation — that they are not seen as part of an overarching business strategy. Instead they are hived off from the rest of the business and measured according to “traditional” metrics of reach, awareness etc.”

So true. Give us a seat at the damn table.

Things ARE changing. We now are hearing about companies launching social media divisions from within. Mac mentioned Scott Monty getting hired by Ford. That’s great news for Scott…but that’s not what will be the real big news. What will be the big news (and I believe this will happen) is that they’ll give Scott the freedom and authority to do what he believes he needs to do. Then people like Scott will turn hype into reality.

I can’t find the specific report, but I recently read that the number of B-to-B corporate blogs started by companies fell by nearly 50% from 2006 to 2007. The reasons given were that many B-t0-B blogs were promo fluff and slightly changed press releases. Basically absolute nonsensical feel good crap that no one wants to read. Marketing diarrhea.

For about a week, I worked on one. What a waste of time.

The company, which I won’t name, was in the promotional products industry. The VP of Marketing was a pompous ass. The type of guy that announces that he’s very hands on and that he’s knowledgeable about blogging. Basically a clueless dipshit with an ego.

Yes, it feels good to write this.

To him, a blog entry was an opportunity to blatantly market his company’s product lines an special deals. Push, push, push. People aren’t interested in reading digital sales pitches. They want to learn and to share and while they may accept some promotional aspects, they are there to be hit on.

He had no or very little respect for his customers. He seemed to think they were simpletons who could barely run their own businesses. That doesn’t surprise me because he figured that they’d be interested in reading “Hey folks, have you considered company branded placemats?”

I lasted a week doing it. Every single one of his subsequent posts were a violation of the spirit of corporate blogging. He brought in someone else, a guy who started out writing crisp, insightful posts. After a few months, he was writing crap. Then he left.

The blog lasted a total of four months. Now it just sits there.

That’s why B-to-B blogs are stalling. Pompous asses at the wheel of social media.

Let’s take a look at the debate between Brian and Loic, point by point.

Point #1

Brian Solis: Understand You’re Not the Only Story in Town
Loic: Who cares about stories, you can get traction and users if you have a good product

Where do I start? First of all, Brian’s spot on in that many top executives in startups overvalue what the product or the service or whatever it is that they’re introducing. They don’t understand that the battleground for attention from key influencers and potential customers is filled with other players battling for attention as well. Sometimes it’s necessary to get someone to help craft a pathway through that battlefield, from someone one that understands which weapons and shields are needed. How to break through that clutter. Because on that very same battlefield are others looking for sweet victory as well. And that’s just the battle to get noticed.

Sometimes that’s having someone who can help craft and deliver a great story.

And, yes, sometimes, one of the best weapons is having established a blog and with that, a burgeoning community. Loic has done that and kudos to him for that. He is a great example of what he’s writing about.

Some of those competitors on the battlefield may not be direct competitors in business. No matter. They are still competing for mindshare of the audience a startup wants to reach.

CEOs need to understand this. They’ve worked their tails off for a significant period of time to produce something. That’s quite an accomplishment in itself. But many automatically think that whatever they’ve produce “sells itself” that it’s a “no-brainer” causing people to automatically understand why they should buy it. This is called hubris.

Hubris kills. For example, a trivia question. Guess who said this last fall:

“I’m in it for the long run. It’s not a very long run. It will be over by February 5.”*

History is filled with failed startups let by overconfident individuals that failed to realize they need some sort of marketing plan to get the word out, to position the product, to clarify key features and benefits. They decided to start companies and then implemented marketing as an afterthought. In other words, their companies have no stories.

While the atmosphere is much better today, I’ve seen decision makers that refuse to get this. It’s as if they seemingly believe that press rooms of major business publications had fax rooms where eager young interns hang out excitedly to retrieve their press releases and run to the editors with all of your important info. If you lack a story - and a decent product - it’s much more difficult to gain traction.

No, Loic, good stories are often needed. Stories can explain complex products. Stories can differentiate between competitors. Stories can offer insight that go beyond a series of sentences on a press release. Just as blog posts can. Blogging and trying to develop a community can work - but not really in time to help that start up. Unless they’re already a know quality like you. It also helps when you have a Web 2.0 type service that connects people such as Seesmic.

A second major point regarding Loic’s comments is that not all good products can get traction. Just as not every great guitarist gets that major record deal, just as not every great aspiring actress gets the big break, not every great product gets noticed. There are a bunch of factors that influence success. As Jim Kurkral commented on Loic’s post, “Even people with great products can still fail getting coverage.” Coverage in industry press, coverage in mainstream press, coverage in blogs. Nor will all creators of great bloggers be able to form online communities.

For that matter, not every product that meet with success is of top quality. Sometimes it’s luck. Previous reputation. Timing. Or a great story.

*Trivia answer: Hillary Clinton, (self)presumptive nominee for the Democratic Party in the U.S. Presidential race, describing how quickly she’ll win the nomination.

This morning, Norman Birnbach wrote an article wherein he suggests that I emphasize giving swag:

One of his tips is to “Give swag” — a point that Chris Abraham emphasized in a recent interview. The reason is that blogging is often a second career and there are few perks so swag can make a difference to get bloggers to respond.

He is not wrong, but I think I need to clarify my definition of “gift-giving.” I don’t emphasize giving away swag, necessarily — what I do emphasize is gifting — and giving ’til it hurts, “What a gift needs to be is super-valuable to the recipient — the value of a gift is based on perception.”

Read more…

Rich Karpinski just wrote an article that’s featured on the front page of BtoB. The information in the article is basic. It’s not groundbreaking. It’s about a trend that, if you’re reading this blog, then you’re already familiar with. It’s about how businesses are now embracing blogging.

Karpinski points out how only aroudn 12% of Fortune 500 companies run corporate blogs. But he gives key examples of how companies such as Dell, Kodak, Intel, SAP, and IBM run coporate blogs.

The reason articles such as this can be important is because it is located in a targeted business publication. It’s readers, many of whom are at he very least involved in corporate markting at some sort of senior level, need to be exposed to more articles such as this. Larger publications such as Business Week feature similar articles that carry influence.

The more exposure senior managers - be they in marketing or technology or finance - get exposed to blogging and, more importantly overall, social media as a business cultural paradigm, then the more likely they are finally going to “get it”.

Articles such as these are a form of professional-word-of-mouth. Many of the decision makers - those that are in the 88% of the Fortune 500 that don’t have corporate blogs aren’t going to be reading social media marketing blogs. Many of them haven’t heard of Todd And’s PowerList or the Age of Conversation or ooVoo. They’re not on Twitter. They don’t care about any of that. And there’s enough of them out there that that’s fine…for now.

So that’s why wee need more basic articles like Rick Karpinski’s.