DMA social media report shows 42% of advertisers do not understand social media

Research: Fri 20th March 2009

A social media marketing published by the Direct Marketing Association (DMA) track business model changes, as companies are increasingly using social networking sites to drive advertising revenues.

Research from web-strategist shows that than 50% of interactive marketers are embracing the potential to create a cost-effective word-of-mouth social media campaign and increasing their social media budget.

The report is aimed as a guide to direct marketers, who are starting to acknowledge the strong potential of these sites, and will help them understand the marketing opportunities available within social media.

Interesting, the report highlighted a division in the marketing industry, with almost half (42%), cisting "lack of understanding" as their main barrier to "investing in social media".

The DMA report reveals developments and trends across sites, such as Twitter, Facebook, MySpace including mergers, acquisitions and venture capital investment activity found in the sector.

Mobile marketers should stay alert as a significant part of the social marketing scene is shifting towards mobile, which calls for a closer link between mobile marketing campaigns and social media in the future.

Mark Brill, chairman of the DMA Mobile Marketing Council and CEO of txt4ever, said: "The Social Media Report has been launched at a critical time for direct marketers to understand the marketing opportunities that social media present.
It is a nascent industry, so confusion is commonplace as to how social networking and UGC websites are monetising their content, and how users interact with such media.
These websites have great potential for highly-targeted marketing opportunities, so this report will help direct marketers to make informed decisions."

Article Links
Forrester Report on Social Media
Reported in Brand Republic