Social Media As an Investment

In its brief history, Social Media, as called New Media, has traditionally been viewed as a place to meet new friends, reconnect with old friends and interact in an online social environment. In short, social networks were “a cool place to hang out” but held little applicability beyond that. There has been no shortage of funding in Silicon Valley for firms launching new media platforms. With the emergence of sites like MySpace, Facebook and Twitter, there is no question that there is value in the vast amounts of information on people that these platforms have been able to collect; however, there has been no clear monetization strategy beyond bringing in advertising revenue. Arguments have been risen as to the true value of these firms; some would state that their valuations are inflated and artificial, while other claim that the value of their databases alone are enough to justify multi-billion dollar price tags.

The New Value of Social Media and The Social Media Firm
More recently social media has spawned a new value proposition, which is the business applicability of the vast user-bases these social networks have created. Regardless of which side of the valuation fence you sit on, it can be said that social media holds vast utility for businesses looking for a new way to reach out to customers and engage in two-way communications. This has never been done before from a traditional marketing, advertising or public relations perspective, and has given rise to a new business model: The Social Media Firm. This brings forth the argument of whether or not The Social Media Firm is a good investment. Is The Social Media Firm a fad that will die out in the coming years, or is this a long-term, sustainable industry that will one-day drive obsolescence to the traditional methods of advertising, public relations and marketing?

Given the state of the current economy, Venture Capital and angel funding sources have been keeping their portfolio dollars close to their chest, reserving investment only to businesses with a decent operating history, solid revenue streams and unlimited growth potential. Does the Social Media Firm fall into this category? My answer is yes. The bottom line is: social media is not going anywhere. Social media has become a staple of the lives of younger generations, and the fastest growing adopters of new media are people over the age of 30. Since the recognition of the business potential that social networks holds, large Fortune 500 firms are devoting a good portion of their marketing budgets to social networks and new media campaigns. For instance, Pepsi has devoted $20 Million of their marketing budget for a social media program called Pepsi refresh, and many large firms are beginning to follow suit. Needless to say, the earning potential for The New Media Firm is substantial.

Is it sustainable?
As mentioned earlier, new media is not going anywhere. For the most part it has become a standard part of the Internet experience similar to email. The sites that are considered the gorillas in social media may churn; however, there will always be something new to which these Internet-based communities will migrate. For example, the social media migration to-date has gone from MySpace to Facebook to Twitter, and the next major shift and/or addition to this massive online social sphere is likely just around the corner. The long-term sustainability of The Social Media Firm is largely dependent upon these companies’ ability to identify and pre-empt the next big shift, and to develop effective methods of leveraging both the old and new platforms for the sake of driving revenue, profitability, sales volume and identity to their clients.

Why Outsource to The Social Media Firm?
One question that may arise is: why would large companies hire a social media agency when they have the monetary resources to do it in-house? The answer to this is the simple fact that it is cheaper to outsource a new media campaign to a firm that has a skilled team already in place that is intimately familiar with navigating the complex world of new media. In the same manner that large companies hire advertising agencies to design traditional media campaigns, this approach can and will be taken for new media. By hiring The New Media Firm companies can eliminate both the administrative burden that comes with hiring a multitude of new employees, as well as the learning curve that will inevitably be present when trying to integrate those employees into their corporate culture. It is more cost effective, in both monetary and administrative respects, to outsource these campaigns to professional teams that are fully adept at leveraging the potential of modern media, navigating the codes of conduct of these online communities and staying ahead of the curve when it comes to identifying the exploiting the latest new media trends.

Closing Remarks

In summary, I do believe that investment in The Social Media Firm holds great potential for many funds; however, it is imperative that when vetting these agencies, Venture Capitalists and Angels need to ensure that the company contains the correct personnel and management team to fully exploit this budding industry. The ditch is full of one-man shops and so-called social media experts that are no more than victims of the recession who happen to be adept at Facebook or Twitter. It is imperative that the architects of new media campaigns are familiar with the intricate details of new media, and the vast array of assets that exist online to for a business to take full advantage of the social media world. Utilization of the lesser known social media outlets such as Digg, BrightKite, hi5, Xanga and countless others could be the difference between a full-scale robust campaign that shows real results, and an ineffective and unorganized attempt at new media that wastes marketing dollars.

Due to the infancy of this industry, there are few companies out there that truly know how to unlock the value of new media for business. The one’s that do will quickly rise to the top, and if sufficient due diligence is done, these companies are ripe for investment. A strategic infusion of capital is likely the boost needed to take these companies from a sustainable cash-flow business to the next industry giant with A-list clientele.

Boom Media, Inc. is a new media optimization firm based in San Diego, California. New Media is the culmination of all online assets (such as social networking, blogs, micro-blogs, bookmarking and video sites) and tactics that can be used to drive revenue and identity for businesses. With a proven track record for success, the Boom Media team delivers results with innovative and measurable campaigns. Learn more at

Author: Eric A Rice
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Why is Digital Media Gaining Popularity?

If you want to explain digital media, you would say that the electronic media that work on digital codes and served across online news format is called digital news media. If you think this definition is more technical, we can say in other words that the online news media is the future of many things, such as marketing, advertisement, exchange of information, communication media, etc. It is changing the concept of marketing, advertising, and the way information is displayed and accessed.

You can also refer digital news media to the electronic or online media that is becoming our necessity now, such as cellular phones, compact discs, internet, digital video, minidisc, computer, e-Commerce, e-book, television, video games, and many other interactive media. They can be called online media since they have the ability to store information in electronic way. Among them, internet is the most powerful one.

Internet offers great flexibility and ease of use. We can store pictures, audio and video material, graphics, and rich text. The growing use of internet and the great advantages it offers are no secret for anyone.

The fusion of digital media and internet has created a new world of fantasy. Its growing importance can be judged by the fact that some universities have created its faculty; for instance, the Digital Media Academy at Stamford University. Here, students can join certificate courses in 3D animation, web designing, and film production. If we move further ahead and find the types of digital media and how they can help us, we can certainly justify the growing popularity of digital media.

Digital news media also offers great chances of investment in businesses connected to it in any aspect. There is always something new and useful for the people. Online media is attracting more and more people every day and offers great chances of secures investment. You have many lines to invest in, such as internet media, social media websites, digital news media technologies, etc.

The fast growth and popularity of digital media is going very much against the traditional methods of advertising, marketing, and of providing information. Moreover, digital news media is very flexible, powerful, convenient to access, and economical. Websites are work exactly like your own virtual showroom on the internet, where you can display all your products and services more professionally and in much presentable manners. In no times, your website can be accessed from the other corner of the world. Anyone can gain access to your website regardless of the time or location. The enormous advantages of online media are attracting both the companies and customers. It is not strange to note many prominent companies are turning towards digital media for making their presence known to customers worldwide. The role of traditional media is diminishing fast.

For people, digital news media is becoming a part of their life, since for many things we depend on digital media. At the same time, for companies the digital media has become a part of their business plan. When we avail this magnificent interactive way of communication, we get all the ease, comfort, powers, etc, more economically and satisfactorily., a growing community that attempts to deconstruct digital news media in all its pervasive forms across the web with up to date articles revolving around all types of interesting issues and offer constructive opinions on online news trends today from a prosumer perspectives. Our articles are created, reviewed and submitted by experienced and knowledgeable staff of professional writers

Author: Liza Mathers
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Internet Marketing FAQ 1 In Canton MA: Is Marketing Advertising

Top Marketing Question Number 1 That Business Owners Ask In Canton MA: Is Marketing Advertising?

QUESTION: Is marketing advertising?
ANSWER: No. marketing includes everything you do to attract buyers to come and buy from you. That includes the name of your company, the way you dress, your pricing, the way you answer a phone.

Advertising is only one part of your marketing: advertising is any action you take to broadcast your message, using newspapers, billboards, radio, telephone and people shouting on street corners.

ACTION: Now here’s a quick and easy action step you can have fun with right now. This minute. You’ll learn the difference between marketing and advertising. And you might get yourself a new customer:

Who’s your best customer? Whatever name came up just now is perfect. Now imagine she or he’s in front of you now, and you’re laughing at a joke they just told you. And you ask, gene, what do you like most about my service? I mean, ,Why did you buy from me? Price, quality, speed, reliability, something else? What comes up for Gene??

1- Choose a single quality that Gene told you, or the first one that comes up for you, or just choose one. and think of a bitesize special offer for that one quality. If its price, offer gene a special onetime discount. If its speed, offer a special onetime instant service. If its reliability offer a special onetime 101% guarantee.
2- Now imagine you go your way and the next day you call up Gene, and you say: Gene, I’ve been thinking about you, because you are one of my best customers. So I prepared a special offer designed just for you. It’s my once a year to Gene offer'” And Gene goes: WOW.
3- OK LETS RECAP: When you asked Gene why he bought from you– that was market research. When you made Gene a special offer that fit her reasons for buying from you and not someone else– that was marketing. When you called gene up and notified her you had a special just for her–that was advertising.

So now go ahead and do this with the Gene of your business.

Article Source : Internet Marketing FAQ 1 In Canton MA: Is Marketing Advertising : ArticleBase

Nitsan Gaibel –
About the Author:
Nitsan Gaibel created Market Leader OnLine to help local businessmen grow their businesses by becoming the leader of their local market niche. Particularly using video, dominating Google, branding, and word of mouth marketing. Phone: 888-356-0246. See