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August 30, 2010



I enjoy how most of the figures are percents, it allows the reader to apply value to time, which is the true cost.

Akash Pai

Great post John. Just curious on your thoughts on:
1. Middle tier and SMEs
2. How does the breakdown differ per industry vertical. Isn't it true that certain verticals (consumer facing brands - apparel, automotive, hospitality) will have natural tendency to spend a higher % in social media related activities. Are there any numbers out there ...

Daniel Stoica

Awesome Post!

The discovery process is ... enlightening!

When we find out that we can connect and engage with our most loyal customer base through a medium that costs us a small percentage of the previous mediums used, we adopt then Go Big!

Thank You for sharing such valuable information!


I like your comment about how key activities will continued to be labeled as social media, while other elements will get baked into PR, user experience, digital marketing, etc.

The perception for most in my experience is that since social is the cutting edge... they are content to hang out in the "adoption and integration" area. One large brand we worked with stated that as long as they could call something a "pilot" the internal company pressures were lifted.

I think the activities that will continue to be labeled "social" will be the items perceived as more experimental (perhaps with the exception of the BI/monitoring side of things).

We know social media typically works best in concert with advertising and PR efforts (not as a silo effort). Those who are ready to "go big" likely also have this understanding.

For that reason, and related to your point, many supporting strategies and tactics will conveniently be baked into areas where budgets already exist. I know this varies by company culture and structure, but some looking to go big in social will be flying as far under the (social) budgetary radar as possible. Oh, the politics ;-)

Lorraine Ball

I think the percentages seem low,until you realize you are working with a $10 million budget. 1 - 10% of that goes a long way in the world of social media.

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