Facebook as a marketing tool: friend or foe?

And those that have already tapped into the potential benefits of using social networking sites as a marketing tool find it difficult to revert to the traditional ways.

In the UAE, telecoms operator du has been using the social networking site. Sherif Safwat, Executive Director of Brand Marketing Communication at the company believes that if companies fail to recognise the importance of using social networking sites they would be bumped out of the market very soon.

'We invested $1m on online marketing and advertising this year and find that there is a huge appetite for online media in the UAE and worldwide. We have to adapt to this new trend and unless we do so we’ll be out of the market.’

Social media sites

Many public relations companies, for instance, have started to use Facebook to promote not just themselves, but also clients. However, Andrew Bone, UAE-based Regional Director of US PR firm Hill and Knowlton, warns against jumping on the bandwagon before really understanding such sites.

Hill and Knowlton has so far refrained from Facebook, but does use other forms of social networking sites. “We do use social media and marketing tools such as Digg and Twitter. Being a copy-cat isn’t always the best approach - we like to use a more customised approach with each of our clients,” said Bone.

But he doesn’t dismiss the idea of using sites such as Facebook and MySpace in the future. “We do understand the increasingly powerful effect that sites like Facebook have,” said Bone.

But he warns that using social networking sites can be a double edged sword. “They can either work for you or against you.” He pointed to the Royal Bank of Canada (RBC), which set up a Facebook group to get feedback about student loans from those taking them. “This was one of the best practice cases were they actually got the students involved,” said Bone.

On the other hand, a group of students in the UK started a group on Facebook against the HSBC when it doubled the interest rate on loans 4.8 per cent. “Unlike RBC, the HSBC failed to make contact with students - that’s why the problem was created,” said Bone. So far “The Student Loans Rip Off” group has attracted more than 25,000 members.

The escalating popularity of Facebook and other social networking sites has raised concern among employers, which will make using social networking sites for marketing purposes more difficult in future. Or at least, make it harder to reach people during their working hours.

Clear policies for use

A number of international studies make the point very clear. One study that surveyed 3,500 firms in the UK estimated that 233 million work hours are squandered each month by employees “wasting time” on social networking sites, costing British companies more than £130m per day. As a result, companies in North America and Europe have started blocking access to these sites.

In the Middle East though, companies have been slower to block access, handing an opportunity to marketers in the region. “People can always find ways to waste time whether by talking by the water machine or just chatting to their colleges and I find that when people are trusted they react better,” said Justin Doo, General Manager of Trend Micro in the UAE, a US based IT security software firm.

Although Trend Micro doesn’t block its 3,400 employees from visiting social networking sites, the downloading of applications, music and online streaming of videos on sites like YouTube is closely monitored.

“We just monitor the downloading because that can potentially cost the company money for purchasing the extra bandwidth as well as a potential security breach,” said Doo.

Although access isn’t blocked, there is concern about what information finds its way from a company onto social networking sites. Preserving a sound corporate image remains a priority and employees might receive anything from a warning to a dismissal if corporate secrets or harmful content to the firm were posted.

A recent study by UK-based IT security firm Sophos, found that more than two thirds of respondents feared their staff were sharing too much information on Facebook.

And this highlights another aspect of the double edged sword that Bone talked about. That while companies want to reach people over Facebook, they have to ensure they have clear policies about its use to protect corporate identity, image and secrets.

“We allow employees to access social networking sites, but if an employee was found abusing the use of these sites or harming the company’s image they will receive a warning,” said Bone.

Even du, which is actively using Facebook, has blocked access to employees. “For the well-being of our employees and to increase their level of production we blocked social networking sites,” said Hala Badri, Vice President of Corporate Communications at du.

So despite the merits that might come along with using social networking sites as a tool to promote your company, the risks involved must be carefully assessed and wasting time is perhaps one of the major concerns. But equally, it does open new doors in a world where 30 second TV advert can no longer guarantee success in hitting your target audience.

See also:
AME Info on Facebook
Embrace new marketing methods or die
Indecent exposure