Social media key to recovering post recession, study shows

by Elizabeth Clifford-Marsh, revolutionmagazine.com 28-May-09, 11:58

LONDON - User-generated content and social media will be key to generating sales and reaching consumers once the recession lifts, two separate studies say.

As disposable income tightens, UK internet users are spending less time on transactional sites and more on user content driven websites such as social networks, according to Experian's latest Insight Report.

In terms of traffic, social networks overtook retail websites in the UK for the first time in January 2009 and by March were receiving 14 per cent more internet visits, the report said.

According to Experian, brands that have incorporated UGC and social media into their sites are seeing increasing web traffic and conversion rates compared to those yet to embrace Web 2.0.

A survey of marketers by Vignette Corporation has found brands are aware of the importance of social networking and UGC, but lack the tools to integrate them with long-term marketing initiatives and measure their effectiveness.

Although 55 per cent of those surveyed said that Web 2.0 priorities are at least as important as traditional marketing techniques, 40 per cent have no social media process or strategy in place.

Investment in social media will be increased by an average of 40 per cent by 71 per cent of the companies surveyed.