Socialnomics: How Social Media Transforms the Way We Live and Do Business »

Erik Qualman has helped grow the online marketing and e-business functions for several Top 100 brands over his sixteen-year career. He is currently the Global Vice President of Online Marketing for EF Education, the world's largest private educator, and an MBA Professor at the Hult International Business School. Qualman is also an International Fortune 500 Speaker and his blog socialnomics.com is listed by PCWorld Magazine as a Top 10 Blog to Boost Your Social Network Savvy. His video "Socialnomics: Social Media Revolution" was one of 2010's most viral on YouTube. Follow him on Twitter at @equalman and visit www.socialnomics.com.

Social Media.

Social media platforms like Facebook, YouTube, and Twitter are fundamentally changing the way businesses and consumers behave, connecting hundreds of millions of people to each other via instant communication. This is a massive socio-economic shift that is fundamentally changing the way consumers and companies communicate and interact with each other.

Welcome to the world of Socialnomics—where consumers and the societies they create online have a profound influence on our economy and the businesses that operate within it. Online word of mouth and the powerful influence of peer groups have already made many traditional marketing strategies obsolete. Today's best businesses and marketers are learning to profitably navigate this new landscape.

Brands can now be strengthened or destroyed by the use of social media. Advertising is less effective at influencing consumers than are the opinions of their peers, making direct-to-consumer marketing messages less valuable each day. But savvy companies are using online networking sites as massive focus groups and as an efficient means of communication with consumers. If social media isn't a part of your business strategy, you've already fallen behind the curve—and your competition.

In Socialnomics, Erik Qualman offers a fascinating look at the impact of social media on business to reveal what the future holds and how businesses can best take advantage of it. He explores how social media is changing the way businesses produce, market, and sell products; how it eliminates inefficient marketing tactics and middlemen; and how businesses are connecting directly with their customers through popular social media platforms.

Social media will continue to change the way businesses market products and how consumers and businesses interact with each other. If you're a marketer or business owner, the big question is whether you'll keep up with those changes. Socialnomics is an essential resource for anyone who wants to understand the implications of social media, and how to tap its power to increase sales, cut marketing costs, and communicate directly with consumers.

Foreword.

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.