The Secret of Marketing on a Social Network

The explosion of online social networks like Facebook, MySpace and LinkedIn has opened up a whole new world of marketing. These social networks create new realms of possibility in the realm of online marketing, as it enables (at a minimal cost) a massive word-of-mouth campaign. As word-of-mouth is the most effective form of advertising, it’s no wonder that so many companies of all sizes are interested in social network marketing.

The earliest and still most common form of marketing on social networks is to simply create a presence on the social network. Many corporations, charities, bands and other organizations have an account on the social network, and one or more employees is tasked with maintaining this social presence. Through the social network, the organization can announce to it’s many friends and customers what new products and services they are offering, in addition to enabling customers to have a more personal relationship with them. This is free and productive, however it does not have much of an effect and many corporations are seeking other options.

The best way to market via social networks is to encourage participation. Many companies have found that by taking suggestions, running contests and otherwise bringing the members of the social network in, they can greatly increase customer loyalty. It also permits companies to quickly “crowd source” projects such as logos or new food flavors.

One last way many organizations use social networks is for “Astroturfing,” which is when an organization works to make the appearance of a grassroots organization when actually they are using a network of company agents to advertise a product or service. This is often against the terms of service of the social network, and it also often leads to severe backlash. Many modern consumers will see astroturfing as lying to them, and so it is a tactic best avoided.