Zaheer Nooruddin

Digital Burson-Marsteller Asia-Pacific Insights: Corporate Use of Social Media

Nov 9, 2011   //   by Zaheer Nooruddin   //   D/BM Blog  //  Comments Off

Social media has been a buzz phrase for some time now, yet its impact and its relevance remain questioned. For some, these new channels are a byword for disruption and loss of control, for others it’s a wonderful opportunity to expand cost-efficiently into new customer segments and markets and to build real interest and loyalty in one’s brand.

Consumers are pointing the way forward, taking to microblogs, social networks, mobile social applications and other tools with ease and often breathtaking enthusiasm. Social media of different types now dominate Internet use, with Facebook leading online time in Australasia, Hong Kong and across a swathe of Southeast and South Asia, while domestic players such as Tencent, Naver, FC2 and Wretch are hugely popular across North Asia.

Asia is shaping the Internet and social media in terms of technology and behaviour. Sina’s Weibo (micro-blog) platform is considerably more technically sophisticated than Twitter. Asian-based social networks and online gaming platforms introduced virtual currencies and online transactions long before their western counterparts. Smartphones are already near saturation point in Japan, South Korea, Hong Kong and Singapore.

One of the most conspicuous aspects of social media in Asia is its highly contributory culture. According to Forrester Research, Koreans and Chinese are the most active creators of online content in the world4, uploading vast quantities of video, photographs, and blog posts every day. Indonesians love to share news and updates using Twitter. Clearly, organisations looking to target consumers, especially the under 30s, must now incorporate social media into their marketing mix or miss their target. It is equally clear that the Internet and social media are now critical.

The growing challenge of reputation management

Accelerated information flows make it much harder for companies to manage their reputations. With journalists, bloggers and other opinion-formers assiduously tracking micro-blogs for breaking news and combing discussion boards for story ideas, companies must approach the Internet as a core tool to track topics and issues relevant to them and as a channel to build relationships with existing and new influencers.

In parallel, it is clear that NGOs and activists, as well as disgruntled customers and local communities, have become much more adept at using the many low-cost channels and tools at their disposal to share their experiences, voice their opinions, organize campaigns and raise funds. Social media are a crucial part of their new weaponry.

In addition, large and especially publicly-listed companies are under pressure to become more transparent and accountable, in part due to government intervention, in part due to increased stakeholder and consumer expectations of good behavior, and in part due to ever greater demands for information and dialogue.

This raises the question as to how organisations should structure themselves to participate with the multiplicity of stakeholders actively using social media. Most organisations are struggling with questions such whether engagement should be handled centrally or locally. Who are the appropriate spokespeople? What are the skills and How companies are responding?

Social media provide an opportunity for organisations to increase awareness of their activities and to build interest, trust and advocacy amongst their stakeholders. That they can also do this direct with their audience and by-pass conventional gatekeepers is also an attractive proposition.

Yet enthusiasm amongst companies in Asia has been muted. Last year’s Asia-Pacific Corporate Social Media Study by Burson-Marsteller identified that top Asian companies had largely been hesitant to use branded social media channels to communicate with corporate audiences.

This hesitancy is also evident in more recent research showing that most companies believe they are poorly prepared for crises that emerge and spread online, despite believing that digital has made them more vulnerable and made responding to a crisis more challenging.

Research for this year’s study shows that more top Asian companies are using branded social media channels for corporate marketing and communications, with 81% of firms covered – double the number across Asia in 2010 and almost on a par with the 84% of Fortune 100 companies – now using branded social media channels.

It is clear that Asian companies are also leveraging a greater number of the channels at their disposal, with just under a third using three social media channels or more, compared to only 3% in 2010. Conversely, only 19% of firms are not using any form of branded channel for corporate purposes – a significant increase on the 60% identified in 2010.

Preferred social media channels

Social networks are proving the most popular social channel for corporate marketing and communications. This might be regarded as surprising, given that Facebook – the top social network across much of Asia-Pacific – tends to be regarded more as a consumer marketing channel. Yet many Asian firms have opted to focus their activities on a single branded profile that is used for both consumer and corporate marketing.

In our experience, the principal reason for this is that social networks were mostly first used by firms looking to increase awareness and buzz about their products or services. Corporate teams then piggy-back on these established channels, often in addition to advising on messaging and governance.

It is also true that many firms have started (and continue to start) their official social network presence without considering carefully their target audiences and objectives. In this ‘me too’ scenario, companies develop a channel in the corporate name and see how it evolves based on a combination of its popularity, user feedback, resources and content available.

Less surprising is the fact that Asian companies are deploying micro-blogs for corporate purposes. Twitter, the weibos (‘micro-blogs’) in China or me2day in South Korea tend to be seen more as influencer networks of journalists, bloggers and brand advocates, while also being used by media outlets and publishers to extend their online presence.

Given the relative ease of resourcing micro-blogs and their search engine-friendliness, firms are more likely to set up a dedicated corporate channel that serves a broad range of purposes. Asian companies are also starting to develop standalone profiles for product brands and specific corporate functions, notably recruitment.

Micro-blogs are also popular as they are typically seen as an additional information ‘push’ tool, enabling broader dissemination of content and messages across the Internet and, increasingly, to mobile devices. Better still (from a corporate perspective), there seems little need to engage in sustained discussions – for most Asian companies the main forum for dialogue is face-to-face.

This reluctance to enter into public dialogue is testament to a widespread conservative business culture; it also means there is less chance of firms losing face in front of others. Hence also the general lack of enthusiasm for corporate blogs, where conversation is expected – even if it actually tends to be limited (in many instances, almost non-existent). And while video sharing platforms rarely attract significant levels of corporate-related discussions, they remain in the minority across much of the region, despite the very high popularity of online video in most markets.

For many firms in Asia, the slick corporate paean to superior leadership and products remains the video of choice rather than the more ‘genuine’, on the ground feel that is now commonplace amongst Western companies.

Local differences

The use of social media for corporate marketing and communications is by no means consistent across Asia-Pacific; some markets are very aggressive, the majority are active if cautious, a few remain highly conservative.

On the whole, north Asian firms are the more aggressive users of social media. Often focused on managing costs, they view social platforms as a cost-effective route to build short-term market share in their domestic markets. And for both established and emerging players in China, Japan and South Korea expanding into foreign markets, social media is now a critical component of the marketing mix to reach both corporate audiences and consumers.

Leading north Asian companies are also more likely to use video, though this tends to be more a reflection of their impressive broadband networks than their desire to use video, graphics and other visual formats to tell their corporate story.

Compared to last year, Australian and Indian firms are placing greater emphasis on social media, especially in their use of micro-blogs and, to a lesser extent, social networks. In both markets, journalists, activists and business decision-makers are actively using Twitter, which are seen as central to the evolving online reputational ecosystems. By contrast, social networks are regarded principally as consumer vehicles.

The most startling change has been in Southeast Asia – notably amongst Malay, Thai, Philippino and Indonesian firms – most of which were barely using social media at all twelve months ago. What’s behind this shift?

Their fast expanding local online Internet populations and improved telecom infrastructures are one reason. Playing catch up with peers and competitors in the region has also doubtless spurred action.

The relative volatility of their online cultures may also have played a part. All these markets have witnessed the emergence of a more vocal, and politicized, citizenry, who are more willing to express their views on their political systems, corporate behaviour and quality of products and customer service. Leading companies in these countries realise they must at least have a presence in these conversations.

Push and pull communications

Questions that corporate communications professionals (rightfully) ask before participating in social media include:

What are we going to speak about? What’s going to resonate with users? Do they really want to hear about our company news and point of view? How often do we have to post? Who should answer feedback, and how often?

As we saw in last year’s study, Asian companies are – and remain – much more focused on pushing news and information at users rather than responding to comments or actively engaging them in conversations.

This reluctance to get into online discussions has many explanations, not least the lack of dedicated resources with the necessary skills and remit to reach out across the organisation for a response, express it in an appropriate manner and be able to manage the necessary follow-ups.

It is also likely that many corporate communicators do not fully appreciate the interests, requirements and behaviours of their audiences (other than some key journalists). What about product marketing? Few invest in qualitative or quantitative research that can yield invaluable insights into stakeholders’ interests and content preferences.

At another level, the reluctance to get into conversations is also evident in firms’ preference to use their branded social media channels primarily to relay corporate news direct to opinion-influencers in the hope that they will report it and share it with their own online networks.

Corporate Social Responsibility (CSR) is another area where companies feel relatively comfortable when using social media. Examples of local community programmes or business commitments to reduce electricity use or to recycle water are naturally ‘Like’-friendly and can work well as short videos. Even better if people can be persuaded to contribute their own suggestions or ideas, as Pepsi has done with its Refresh Project.

While CSR can help paint a softer picture of the entity, companies need to also be aware of the risks of being seen to over-claim or misrepresent the facts. As market research agency Nielsen has shown10, the Internet is fertile ground for activists and others looking to pick apart corporate claims, especially concerning ‘green-washing’ and the environment.

Another notable area of corporate social media activity is crisis and issues communications. While crises are rare, issues of different types need to be handled regularly, a tricky proposition when it is taking place in the full glare of your Facebook page.

With the corporate rumour mill now real-time and global, companies are profoundly aware of the potential for customer complaints and other issues to escalate overnight into full-scale problems. Some Asian firms are monitoring and responding to negative posts, albeit on a largely ad hoc basis. But the majority feel they are unprepared to handle online crises.
Long- term commi tment and short-term campaigns

Similar to last year, this study reveals high levels of inactive branded social media accounts that were either not updated during the research period or that had been registered but not used.

Clearly, many firms continue to struggle to identify the content and topics of conversation that will help sustain interest over the long-term – indeed, developing a regular stream of engaging, relevant content (especially video) and dialogue is challenging for many organisations.

There is also another explanation for the high levels of inactive accounts: the large numbers of social media profiles that were set up to support product marketing campaigns and the management of official social media profiles takes considerable time and effort, and demands organisations think carefully about their marketing and communications objectives, marketing mix and channel strategies.

Despite this, the high percentage of inactive accounts indicates that many Asian organisations are yet to develop a sustainable social media strategy that places social media in the context of the broader marketing mix, including ‘traditional’ PR, internal communications, knowledge sharing, marketing, customer service and sales.

In the meantime, a high proportion of top Asian companies continue to treat their corporate social media as pilot projects, keeping them deliberately separate from the company website. While firms may remain wary of the capacity for users to say what they want, keeping their social channels at arm’s length also makes it more difficult for users to find them and reduces their effectiveness.

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  • How I Bought Facebook Stock and Why I'm Keeping It May 18, 2012
    What to do with that $500 cash balance burning a hole in my IRA? Buy Facebook. It ended up being so much easier than they said it would be. My initial limit order with a maximum price of $45 for 10 shares was placed early this morning after I heard a report on Bloomberg television that Facebook was allotting anywhere from 15% to 25% of its 421 million shares […]
  • Will Crowdfunding Crowd Out Venture Capital? May 18, 2012
    Venture capitalists have been getting a black eye to go with their blue shirts. A recent report from the Kauffman Foundation slammed VCs for “shortchanging” investors, pointing out that public markets deliver better returns. The next day, Fred Wilson, general partner at Union Square Ventures and prominent VC blogger, suggested that a flood of crowdfunding mo […]
  • The Fastest Online Payment Processor? It's Google May 18, 2012
    If you are thinking about changing your online payment provider, you should take a moment to look at an interesting infographic from application performance management company New Relic. Turns out the most popular provider, PayPal, isn't even close to being the fastest processor. That distinction goes to Google Checkout. PayPal has the market share, but […]
  • Are Massive HP Layoffs the Flip Side of the “Facebook Economy”? May 18, 2012
    If Facebook’s massive IPO represents the wealth created by the rise of social networking, mobile computing and the consumerization of IT, these tectonic shifts hold dramatic challenges to old-line technology companies built on yesterday’s revolutions. So even as Facebook mints a crowd of new millionaires and billionaires, Hewlett-Packard is preparing to send […]
  • Mobile Marketing Set to Create Havoc and Opportunities May 18, 2012
    Procter & Gamble should be kicking itself for not developing a mobile operating system when it had the chance: More people worldwide own mobile phones than toothbrushes. Get ready for a tsunami of mobile marketing and commerce to crash on the shores of retail. The beauty of mobile devices from a marketing perspective is that you can reach consumers at a […]
  • 7 Ways to Motivate Your Startup Team — Without Giving Away Equity May 18, 2012
    Startup entrepreneurs live, eat and breathe their companies. Catching a quick catnap under your desk counts as a good night's sleep. But how do you get the same level of commitment from mere employees? Typically, the answer has been to award them significant chunks of the company in the form of stock and options. It’s not just greed. Sharing equity in y […]
  • The Only Facebook Number That Matters: $104.2 Billion May 18, 2012
    Facebook became a $104.2 billion company Friday in much the same way it became the world’s biggest social network and a cultural game-changer: by stubbornly forging ahead despite criticism and calls that it couldn’t be done. Last week, rumors turned into full-blown financial news stories that the initial public offering was getting a lukewarm reception in ro […]
  • Read/Write Daily: Drones Over America? May 18, 2012
    Today's theme is the funny-looking future. Humans have been dreaming of the era of air and space flight for a long time. But now that we're here, it turns out the future isn't always as romantic as we expected it to be. Look at how ugly some of our best inventions are. The U.S. military demonstrated a totally goofy hovering person-platform in […]
  • Facebook's 4 Biggest Risks May 18, 2012
    Facebook, whose stock is trading on public markets for the first time today, has had an incredible rise - from zero to 900 million users in just over eight years. In the fast-changing technology world, though, today's Facebook can quickly become tomorrow's MySpace. Make no mistake: Everyone's favorite social network faces substantial risks. He […]
  • How Facebook's Mobile Strategy Might Create Future Revenue Streams May 18, 2012
    Large companies often have trouble breaking into new revenue-generating vertical markets. As Facebook barrels into its much-anticipated initial public offering today, the question for investors and analysts will be: How does Facebook start making money from its huge mobile presence? While it may seem like Facebook has completely dropped the ball on mobile mo […]
  • After Months Of Waiting, Facebook Surges In Opening Moments As A Public Company [UPDATED] May 18, 2012
    From here on out, Facebook will not be measured by the number of registered users, the number of photos being uploaded every minute or the number of likes and comments left by its more than 900 million members. Facebook became a publicly traded company at 11:30 a.m. Eastern Friday, and from here on out, Facebook will first and foremost be measured by its sha […]
  • How To Buy Facebook Stock May 18, 2012
    Facebook goes public Friday. It could be worth well over $100 billion dollars. Want to get a piece of that? It's going to be very tricky for mere mortals to get Facebook stock in the IPO. If you want shares, here's what you have to do. "First, get a ton of money. Like tons. I am talking gazillions." So says Peter Kupferberg, a principal a […]
  • Mountain Lion on Mac Will Change TV and Delight Cord Cutters May 18, 2012
    The next iteration of Mac OS X is coming. It doesn't have a launch date yet, but it likely will by the time Apple's Worldwide Developers Conference wraps up next month.  While most of the updates focus on the slow convergence of iOS with the desktop, one unsung gem is sure to delight those of us who rely on the Internet rather than cable for televi […]
  • Everything You Need to Know About the Social Media Bubble May 18, 2012
    Are we or aren’t we? When it comes to social media bubbles and whether or not we’re in one, there is no shortage of people willing to argue on each side of the debate.  It doesn’t matter if Facebook finishes Friday, its first day as a publicly-traded company, with a valuation of $105 billion or $75 billion: The debate is sure to get more intense in the comin […]
  • Rise of the Tech Bandits: AllThingsD & Sarah Lacy, the Business Reporters May 18, 2012
    Editor's note: In the Summer 2012 issue of SAY Magazine, Dan Frommer chronicles the history of tech blogging. For the rest of this week, Richard MacManus, who founded ReadWriteWeb in 2003, will be looking back on the early days. When Sarah Lacy launched the oddly named PandoDaily earlier this year, the goal was to dislodge Silicon Valley kingmaker TechC […]
  • Twitter Ups the Privacy Ante Ahead of Facebook's IPO May 18, 2012
    Twitter fired another salvo in the privacy wars, announcing that it will allow users to block it from recording their wanderings around the Web. Take that, Facebook! Twitter announced plans to support the proposed Do Not Track HTTP header, a W3C standard-in-the-making that will let users keep the messaging service from tracking their browsers. According to a […]

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