Social Media and Public Relations
The most recent noteworthy development in public relations applications is the use of social media channels which are offering access to mass communication tools. Along with the two Internet bubbles (dot.com and Web 2.0), the development of technological infrastructure has widened using social media channels as an ideal tool for companies. These channels can be used as a tool for advertisement, product development and customer relationship management. And especially for PR departments, these channels offer transparent, one to one and continuous relationships easily and effectively.
The web 2.0 and the dot.com are the bubbles of the internet that reveals the reflection of the change in the business industry. The two are seen as significant examples of bubbles for the new business industry that come up with a force and become more and more powerful. Since the technology is changing every day and Web 2.0 will be the most powerful tool until the start of something with more staying power.
The Dot.com bubble is an internet bubble speculation of the gradual progress of the stock market in the field of the internet. This bubble is also significant in the bust of the cycle in the market. The Dot.com bubble was an e-commerce with a specific feature and distinctive theme. This bubble was designed to mock the former bubble by the name web 2.0. The bubble in the dot.com website was a 1999 and also a 2000 bust in the media. The dot.com bubble was a cycle that emerged in form of nuttiness.
The chief reason for the upcoming of the dot.com was to offer an e- commerce service to the computer internet users. The bubble was basically for the marketing in the internet to the potential client. The dot.com bubble aimed at increasing the internet stock market for specific companies which were calling themselves the dot.com. The NASDAQ was at the highest level of its stock marketing records during the dot.com bubble. Subsequently, NASDAQ is the dominant and widely known for the market capitalization.
The web 2.0 bubble is the bubble that followed the Dot.com bubble. This bubble is a social media that allows the users to freely connect through the internet. Subsequently, the users are capable of interacting with friends across the globe. Furthermore, this bubble creates a channel for the internet surfers to chat freely, to upload pictures, and also the videos of individuals as well as music. For instance, there are social media like MySpace, Twitter that allows chatting, there is the Flickr, Facebook that is for users to tag and also share their pictures with friends. This web is thus put into comparison with the dot.com bubble.
The web 2.0 is a bubble and not a temporary fad that will finally burst. This web 2.0 is further seen as the beginning of something with a much staying power. The bubble is a fad that is fading away because it is simply revealing the way bubbles came up (Argenti & Barnes, 2009). Furthermore, for every upcoming bubble that succeeded the other, it has been worsening with time. Thus, it is extremely hard for any given individual to be capable of telling the way the bubble cycle was taking. This is because the cycle is seen as a continuous one for the recurring event. Therefore, the Dot.com bubble is seen as prelude by the world (Shuen, 2008).
As a result of these bubbles and technological development, social media, social networking and social bookmarking sites, phenomenon of the last few years, became the most important tool for global and national companies around the world. These sites with millions of users are offering an invaluable opportunity to brands as a very important communication tool. Now companies have Facebook and Twitter accounts in addition to their web sites. Public relations, which regarded as a management tool to create beneficial relationship between organization and public, use social media to achieve public approval, trust and respectability. And with always accessible social media, everything known about the public relations has changed. Now companies have an environment offering continuous two-way communication with targeted groups; an environment providing one to one, fast and practical way to communicate with your targeted group and this service is used completely free of charge. Companies are sharing the common purpose of reaching the audience easier and faster to announce information about their company. And maybe just to get know the customers from their Facebook pages, Twitter accounts or FriendFeed accounts. Moreover, companies’ PR departments can interact to consumers directly by social media in a very short period of time so that the companies can announce their new products to their targeted audience easily and effectively. More importantly PR departments can gauge their reactions and depending on these measurements they can help updating company strategies.
There are also additional reasons for using social networking sites. One of them is advertising. Facebook and Twitter can be used as an effective advertising tool for companies. Companies can send messages to their very wide audience instantly. In addition, the only thing that fans of the organization, company or the product should do is just following their account profiles to learn all the information they need. So the messages of companies are guaranteed to reach people.
Another reason is product development. Companies can use social platforms as an evaluation tool. They can learn the feedbacks about a new product very quickly. Also they can check the reactions of their customers or employees about upcoming products. Or they can only use social networks just to let customers get to know employees as Zappos does. However the most important reason of using social media is known as PR purposes. Since with using Social Media companies can reach larger audience and they can raise awareness or build company reputation for larger audiences.
Furthermore, as mentioned before, with this new era every other knowledge about PR departments is changed. Now we have different business industry with different business models. So the PR departments have lots of different duties as a result of big change in business industry. Now we have terms like crowdsourcing, crowdfunding for business industry. And PR departments’ new duties also include promoting and building these terms. To examine PR departments’ usage of social media accurately, we should have a look at the definitions of these new terms that recently included in the business industry.
Crowdsourcing term is first heard in article by Jeff Howe which published in 2006. Crowdsourcing is combination of terms “Crowd” and “Outsourcing”. Crowd for large group of people and outsourcing can be explained as for example you are in textile business and labor cost in your country is expensive, moving production to countries like China or Indonesia where labor cost is cheaper to reduce costs or call centers in India directed from America can explain the term “Outsourcing”. Crowdsourcing, as a combination of these two terms, is a term for them which is applied on Internet. We can assume this as a worker network with millions of people with Internet. As we continue with how it becomes so popular for companies’ business strategies, we can easily say that we all started spending a significant part of our daily lives on social media platforms and one to one communications between brands and consumers are also quite common. Dialogs between PR departments and consumers replaced the old monolog environment that only companies were leading the way. Meanwhile some consumers were not satisfied by just having their favorite companies on their friend list, they were willing to involve in the brands marketing activities especially when there was a prize or promotion at the end. While consumers are trying to solve companies’ business related issues by innovative ideas and collective intelligence, companies are increasing productivity and efficiency while decreasing research and labor costs.
Especially with the spread of the concept of Web 2.0, companies consider crowdsourcing more importantly. Lot more work is done by help of consumers or volunteers. For instance, Dell is using a platform where users can share their ideas and make comments and suggestions about other users’ comments, and with voice of the crowd they created new solutions like installing Linux on Pc. In addition to technology based companies, textile companies are crowdsourcing for new designs. Moreover NASA worked with online group–all volunteer- who all interested in astronomy to measure the craters. They ended the project ten times sooner than it could do by itself. Moreover gold company called Goldcorp in Canada made a competition to find more efficient way for searching process of gold. Rewards were promised to the best recommender and with large amount of participants company became an organization with this approach. Also companies like Procter & Gamble, Starbucks, Best Buy and Nike have all platforms that allow customers to help them create new products.
The fact Crowdfunding means, inspired by crowdsourcing, finding the financial sources needed for a project from the collective people group interested in the project. Crowdfunding brings people and their money together to support a project financially generally by using Internet. People can use crowdfunding to finance their various types of projects. It can be used to finance natural disaster victims, educational issues or maybe political campaigns. There are several social media platforms that people can find groups ready to support their projects. These platforms connect people and create new powerful funding ways for them. People can share their projects or their ideas by using these platforms. By this way, people can reach groups easily and have their comments about their business/social plans. Instead of having feedbacks from these groups, PR departments can increase the awareness of their project by using the support provided by these groups. The Kickstarter.com or Indiegogo.com can be examples for these platforms as they can count as the major players for crowdfunding.
At the first phase of crowd funding, people connect to these networks. Then those seeking for funding to their projects, prepare personal pages in these sites that give details about themselves and their projects. They explain the current state of the project and the point they want to reach after necessary funding provided. In addition, short biographies of the project owners and details about the projects they did before or jobs they had before are listed in their personal pages. They try to convince the visitors to finance their ideas/projects. So the more detail they give makes it easier for them to be successful at finding the funding and it makes the process quicker. On the other hand PR departments not only use their products and contents to convince the consumers, they also provide awards for contributors to make them feel privileged. Maybe this is the best part of being a member of crowdfunding processes. Of course the awards differ in every project but the common approach at this point is making these groups feel special by showing that their help creates an amazing way for emergence of a product or service. This way both of the sides (PR departments as funding seekers and these supporter groups) feel appreciated about the crowdfunding process.
With all these additional purposes of PR departments, they are also responsible for checking ROI calculations of their efforts on social media. Calculating ROI of social networking cannot be done by just finding the number of people reached, PR departments should examine the feedbacks of their audience. They should specify the goals and objectives as the first step of calculating ROI. PR departments should be aware of the determined strategies through company’s goals. At this point defining success metrics makes specifying goals easier. These metrics for PR departments are not financial as loyalty, interaction, brand awareness, trust, reputation etc. All data should be clear to calculate the ROI correctly.
The next step is calculating costs such as people costs or technologic costs. Companies should calculate the work force they need for a social networking by calculating the effort they need to reach their goals. Companies should also calculate technologic costs such as monitoring costs, integration costs etc. Then the only thing companies should do is tracking the impacts they made on social networks maybe by checking the brand awareness or reputation. Or maybe loyalty or trust checks can be done. After figuring out the costs financially and qualitatively, PR departments can calculate their social media campaigns’ effects or ROIs in both ways.
As social networking is a very important source for PR departments, it also has security risks for companies that put their private data on social networking sites. Data and identity theft are the most important dangers that social platforms can cause. So many people have access to these sites and huge number of people has access to the enormous database of information. Tons of data can be exploited by identity thieves and can be used for illegal purposes. Companies can cause virus attacks unwillingly by using social networks sites. Or employees can cause company to loose reputation by involuntary information leakage from these sites. Also there are risks of spams, spy wares and mal wares. Companies should be aware of these dangers and maybe could prohibit some types of information sharing for their employees that can cause company to be unarmed.
ESPN’s limitation on employees’ social media activity which prohibits them to enter any kind of information unless it is for the benefit of ESPN is opposite to the aim of twitter which lets everyone to express themselves how they want to. I think choosing this way to express themselves will simply create their tweets look like ESPN homepage. Moreover, in my opinion there should be a guideline indicating some rules for using social media because of some security issues. Not like the one ESPN did, just to clarify some issues that the employees should know. They can also be some ethical issues.
Zappos’s twitter strategy includes more than 500 hundred workers using twitter. Zappos also uses separate subdomain for Twitter. Zappos employees mostly enter personal tweets just with general rules which don’t limit their individual tweets. All the workers answer the questions from the customers and communicate with their followers all the time which ultimately creates relationships through Twitter. In short they are free to tweet whatever they want opposite to ESPN. Moreover Zappos also uses Twitter as a tool to create better relationships between employees.
I think the strategy that Zappos follows is more applicable by giving their customer transparency in many ways. They let customers to know their employees and let direct communication between employees and customers which will create loyalty for their company.
In conclusion, social networking sites have become one of the most effective ways for public relations. With these sites PR department can target the right audience to reach them effectively. Also transparency for consumers is more important than ever now. So the social platforms are used to provide transparency to consumers/employees by PR departments. Consumers and employees want to know all about the company’s finance, legal issues, their challenges and social interactions. Mutual trust can be built by providing real information about the company. And they can also create customer loyalty by this way.