Socialnomics How Social Media Transforms the Way We Live & Do Business

Social Media. You've heard the term, even if you don't use the tools. But just how big has social media become? Social media has officially surpassed pornography as the top activity on the Internet. People would rather give up their e-mail than their social network. It is so powerful that it is causing a macro shift in the way we live and conduct business. Socialnomics charts this shift from the forefront.

Brands can now be strengthened or destroyed by the use of social media. Online networking sites are being used as giant, free focus groups. Advertising is less effective at influencing consumers than the opinions of their peers. If you aren't using social media in your business strategy, you are already behind your competition. Explores how the concept of Socialnomics is changing the way businesses produce, market, and sell, eliminating inefficient marketing and middlemen, and making products easier and cheaper for consumers to obtain Learn how successful businesses are connecting with consumers like never before via Twitter, Facebook, YouTube, and other social media sites A must-read for anyone wanting to learn about, and harness the power of social media, rather than be squashed by it Author Erik Qualman is a former online marketer for several Top 100 brands and the current Global Vice President of Online Marketing for the world's largest private education firm

Socialnomics is an essential book for anyone who wants to understand the implications of social media, and how businesses can tap the power of social media to increase their sales, cut their marketing costs, and reach consumers directly.

"It's obvious that Erik Qualman's passion is social media."

—Dan Heath, New York Times bestselling coauthor of Made to Stick and Switch

"People are hot for social media . . . Erik Qualman says it's about listening first, then selling."

—Forbes

"Erik Qualman has been doing his homework on the social media phenomenon."

—The Huffington Post

"This is a must-read for anyone trying to leverage the social graph rather than be squashed by it."

—Steve Kaufer, CEO, TripAdvisor

"You learn a lot about someone from how they treat their moms. Erik is a trustworthy guy."

—Chris Brogan, New York Times bestselling author of Trust Agents and Social Media 101

"Qualman is to social media what Demming is to quality and Drucker to management."

—Scott Galloway, Professor, Stern School of Business, NYU

The newly revised and updated guide to the social media revolution!

Welcome to the world of Socialnomics—where consumers and the societies they create online have profound effects on our economy and the businesses that operate within it. Online word of mouth, social search, social commerce, and the influence of peer groups are making traditional marketing strategies obsolete. As a result, we no longer have a choice on whether we do social media; the question is how well we do it.

Join Erik Qualman in Socialnomics for a fascinating look at the business implications of social media, and tap its considerable power to increase sales, cut marketing costs, and communicate directly with consumers.

Acknowledgments.

About this Book.

Introduction: It's a People-Driven Economy, Stupid!

Chapter One Word of Mouth Goes World of Mouth.

Why is there a need for social media? Why has it become the most popular activity on the Web in a span shorter than three years? Despite fragmentation caused by the Web, people still desire an understanding of what the majority of other people are doing. Social media is that mechanism. In the future, we will no longer look for the news; rather, the news will find us, or we will create it. That future is now.

Chapter Two Social Media = Preventative Behavior.

What Happens in Vegas Stays on YouTube.

Two distinct forms of behavior have emerged in the social media age. The first one is preventative; for example, you may hide alcoholic drinks during photos, or you may avoid that "harmless" photo with the two attractive lifeguards on your next business trip.

Similar constructs apply to corporations. Companies are thinking hard about actions that could cause a negative reaction within the blogosphere or social graph. While preventative behavior is somewhat of a drag compared to the socially unaccountable freedom our parents enjoyed in the 1960s, it's a good thing on the whole. It's making us adhere to the old adage "live your life as if your mother is watching."

Chapter Three Social Media = Braggadocian Behavior.

"It's All about Me, Me, Me."

The second, more exciting change is braggadocian behavior. As people continue to Tweet and update their status on social networks, it soon becomes a competition of who's doing the coolest thing. What once took place only occasionally around the watercooler is now happening in real time. As a society, this is a good thing. It allows people to take stock of their collective lives and what they're doing throughout the day, rather than letting years go by and looking back on a wasted youth, saying "what did I do with my life?" Is it any wonder that the television viewing audience is shrinking by the minute? People are actually living their own lives rather than watching others. As a company, it's imperative that you produce products and services so that people not only want to be associated with your brand, but also take ownership of it.

Chapter Four Obama's Success Driven by Social Media.

For an indication of how powerful social media is, we need look no further than Barack Obama's meteoric rise to power.

Chapter Five I Care More about What My Neighbor Thinks than What Google Thinks.

Social Commerce: Billions of dollars will be made in and around social media; a majority derived from search queries around products and services. Consumers will have the ability to see what their friends and colleagues found relevant, researched, purchased, and commented on. We've always valued Word of Mouth; social media puts it on digital steroids by allowing you to search for it. Social media eliminates multiple individual redundancies in society. This is a tremendous benefit in saving people's time, energy, and frustration. It is mission critical for companies to understand that the impact of social media shifts traditional business practices across marketing, recruiting, manufacturing, etc. Products and services will find us in the near future.

Chapter Six Death of Social Schizophrenia.

People play various roles in their lives and take on different personalities depending on where they are or with whom they are interacting. People have their work personas that are much different from their nightlife personas, which in turn are different from their family personas, and so on. The same holds true for corporations; on one hand, a company donates millions to save-the-planet-type funds, but on the other hand, they dump millions of gallons of toxic waste into the clean water supply. The transparency and speed of information flow caused by social media mitigates this type of social schizophrenic behavior. What does this mean for companies and individuals?

Chapter Seven Winners and Losers in a 140-Character World.

Celebrities are twittering with followers because they need followers more than the followers need them. More and more people are getting rid of cable TV altogether and watching their favorite shows, debates, and movies online. Conversations with prospects/consumers occur within the platforms (Facebook, Vkontakte, Delicious, YouTube, Twitter, etc.). Consumers will not allow you to force them into your database and communicate through traditional marketing channels (phone, e-mail, direct mail). What do these recent and violent shifts mean, and how can individuals and corporations capitalize on them? How does it integrate with your search engine optimization strategy? A few case studies are highlighted in this chapter. These range from "Can behavioral search data predict presidents?" to "Why NBC's record online Olympic viewing was fool's gold."

Chapter Eight Next Steps for Companies and The "Glass House Generation".

What capabilities and characteristics are needed for people, politicians, companies, and so on to be successful in a transparent and sound-bite crazed world—a world in which social media is a driving force? How will job recruiters find these successful people? Conversely, how will good people find the right job? Referrals are the most effective form of marketing. Social media allows referral marketing to go to unforeseen heights. Smart companies are moving dollars from traditional advertising to incentives for users/buyers to discuss their products within a social media context. This often occurs at the point of purchase.

Chapter Nine Social Media Rolodex and Resources.

This chapter highlights thought leaders and resources that will help you to continue your digital education well into the future.

Chapter Ten Other Insights and FAQs.

Some readers may want to start by reading this chapter first. This section dives into some common questions, showcases interesting statistics & trends, and touches on Social Media ROI.

Socialnomics Summary.

Notes.

About the Author.

Index.