The Small Business Social Media Cheat Sheet

One of the greatest marketing challenges for small businesses, especially when it comes to orchestrating social media campaigns, is determining precisely where to begin. Do I start with Facebook or Twitter? Or maybe YouTube? Some combination of the three? How do I leverage LinkedIn and Pinterest? And what about Foursquare and Yelp? And do I need a daily deals service such as LivingSocial or Groupon?

Ugh. It can really be overwhelming, especially for a business owner who may not have much experience with marketing, let alone social media.

Well, have no fear...the small business social media cheat sheet is here! This informative infographic from Flowtown and Column Five Media analyzes the advantages and disadvantages of each major social media channel, offers excellent advice on how to get started, and outlines the size of the audience that can be reached.

Think Again: Why Social Media Isn't A Waste Of Time

So you've probably heard plenty from naysayers, cynics, skeptics, and even CEOs, CFOs, and CMOs that social media is a HUGE waste of time. It doesn't generate the same return on investment (ROI) as other marketing vehicles; it adversely impacts employee productivity; it exposes companies to legal and marketing risks; and blah, blah blah. Similar arguments are made for individual users, who seemingly spend hours on end communicating via Facebook, Twitter, and other platforms, and refuse (or may be reluctant) to engage with others in the outside world once inside their social media cocoons.

Whatever. You and I both know that social media has plenty of proven, practical uses and applications, for both companies and individuals, and it does get awesome results, especially if campaigns are designed and executed correctly, and if the channels are used in moderation in accordance with their intended purposes. Now here's additional proof of all this:  statistical evidence of what social media accomplishes for people and companies EVERY DAY.

On a daily basis, more than 250 million photos are now uploaded to platforms such as Twitter and Facebook, and 80% of users now visit one or more social networks and blogs. In 2011, 41% of college graduates used social media to search for employment, and Americans spent a whopping 53.5 billion minutes on Facebook alone, mostly to remain in touch with friends, family members, and colleagues.

In the grand scheme of things, social media enables us to communicate more effectively and frequently with those we care about, and to send and receive news and information in real time to wider and more targeted audiences.

These and other insightful statistics may be found in the following infographic from Schools.com, which analyzes the many benefits Americans are reaping from social media usage:

Keepin' It Real: Why People REALLY Follow Brands Online

Here at Marketing Mulligans, we're all about keepin' it real, regardless of whatever marketing subject we're  riffing on. So here's an interesting take on why people REALLY follow brands online.

Obviously, most companies know by now that creating positive online brand experiences leads to loyal customers. And that usually leads to increased sales, greater brand recall and awareness, and other positive residual marketing effects, such as positive word of mouth and the sharing of promotions and discounts with friends, family, and colleagues.

So what are the reasons behind following a given brand online? How do customers perceive online experiences? What compels them to share certain information with others? New research from Column Five and Get Satisfaction has some answers:

• The top three reasons people follow brands on Facebook, Myspace and Twitter are:  special offers and deals, they're already current customers, and the brand's interesting content.
• More than half (53.47%) of respondents follow two to five brands on Facebook.
• Almost all (97.09%) said an online experience has influenced them to buy — or not buy — a brand's product or service.
• Nearly half (45.88% percent) of all consumers have bought a product or service from a brand they follow on Twitter.
• Nearly three-quarters (70%) have participated in a brand-sponsored online contest or sweepstakes.

For more insights, check out the infographic below:

For What It's Worth: The Changing Landscape Of Facebook's Valuation

Following the recent collective investment of $500 million in Facebook by Goldman Sachs and Russian investment firm Digital Sky Technologies, there has been an onslaught of media coverage, as well as a ton of discussion in the blogosphere and Twitterverse, asking the $64,000 (well, let's add about six zeroes to that for accuracy) question: what is Facebook really worth?

Estimates about Facebook's valuation are all over the map, even those by so-called industry insiders and deeply-informed financial analysts, and range from a modest $15 billion to the more widely-reported figure last week of $50 billion. The broad spectrum of forecasts has been fueled by widespread speculation concerning the timing and scope of Facebook's future initial public offering (IPO), rumored to occur some time in 2012, and Goldman Sachs' recent offering of private shares in the social networking company to its preferred clients. An editorial in my hometown newspaper, the Ventura County Star, even compared the $50 billion valuation, which the author felt was outrageous and unfounded, to the heady days of the dot-com era when many companies were both overvalued and unprofitable.

I wouldn't go that far. While $50 billion may be a stretch, Facebook is the real deal and is here to stay — it warrants a multi-billion-dollar valuation. Here's why. Based on reports last week in the Wall Street Journal, and according to individuals with knowledge of Goldman Sachs’ offering to investors, Facebook generated net income of $200 million on revenue of $777 million in 2009. While revenue and net income figures for 2010 have not been disclosed as of this writing, multiple financial analysts and tech insiders collectively estimate Facebook’s 2010 revenue to be approximately $2 billion, driven primarily by tremendous growth in its online advertising business. Indeed, this is a far, far cry from the dot-com days, when so many companies had ZERO revenue or products on the market, and it's certainly nothing to sneeze at. But $50 billion, 25 times last year’s revenue? No way!

More than likely, based on revenue and growth rates right now, and augmented by conservative forecasts regarding its future operations, Facebook is legitimately worth $10-15 billion at the present time. There's no doubt that, like the Google IPO in 2004, the company can command a multiple of 2-4 times this in the equity markets once it becomes public. But is CEO Mark Zuckerberg, and TIME's Person of the Year for 2010, willing to withstand the Securities and Exchange Commission's ongoing scrutiny? Only time will tell.

And speaking of time, let's take a look at how Facebook's valuation has changed since its founding in 2004, as reported in this great piece by TechCrunch. Click on the image for a larger view of the rising curve:

The Wall Street Journal has a slightly different take on these figures in this story, which also analyzes the fluctuations in Twitter's valuation since 2006.

This will definitely be a situation to keep close tabs on, particularly since hot social media companies, such as Groupon, continue to generate huge venture capital investments and are constantly eyeing billion-dollar IPOs and exit strategies.