KPMG Survey: Social Networking Is a Disruptive Force and Opportunity

Last week KPMG released the results from a new survey of 200 media, marketing, and advertising executives. The survey was conducted in connection with AlwaysOn’s 2009 OnMedia conference in New York City.

Some of the main findings confirm what many of us have already seen first-hand: advertising dollars are shifting dramatically and quickly. Of those executives surveyed, 75 percent “predict that advertisers will move more than a quarter of total media time and spending away from traditional channels in the next five years.”

Where is this money going? In large part, the big industry winners are Facebook and its immediate competitors. Indeed, the vast majority (72%) of the executive respondents said that their companies will be using social networks in the near term in order to create and strengthen their brand images.

In this jittery business climate, it’s natural to take stock of these market transformations and think: But should I stick my neck out? For those marketers used to print ads and television ads and banner ads, falling back to a traditional game-plan does have its organizational advantages. For one, you don’t have to spend time conquering new learning curves.

But here, we’re simply reminded of one of Warren Buffett’s favorite investment one-liners: “Be fearful when others are greedy, and greedy when others are fearful.”

Don’t be fearful: As a company that’s helped build over a thousand video marketing campaigns on Facebook so far, we know that the sunk costs of doing a social network marketing campaign are definite yet entirely manageable. Yes — in some cases, you’ll have to master and practice a new form of communication and messaging: you can’t sell your product or service on a Facebook application in the same way that you pitch it in print. However, if you’re willing to put in some time, your investment might very well yield a competitive advantage. Putting it another way: Assuming that your competitors aren’t ahead of you on this front, why not lock in some mindshare among the hundreds of millions of people that actively use today’s biggest social networks?

In any case, KPMG’s survey makes it clear that a considerable movement has already begun. Again, the vast majority of the respondents polled will be investing or else investing more in social media in 2009. So, to a great extent, the tides have changed already, and the new course has already been set. Needless to say, we’re excited to see what happens next.