Social networking sites have not only revolutionised the way we interact, but also the way that we view marketing. Whether you love them or hate them, it’s undeniable that they can do a great deal to raise the profile of a business.
Aside from the obvious cost-effectiveness of using social networking sites (SNS) as a marketing tool, they also allow businesses to engage with their customer and visa versa. When social networking comes into the mix, brands can listen to what customers are saying and interact with them, bringing the customer and brand closer together. It seems like everybody is Tweeting’ or setting up a Fan Page’, and social networking sites are quickly becoming the marketing tool of choice.
But what does this mean for businesses who want to market internationally? There were an estimated 917 million SNS users worldwide at the end of 2009. That’s 13.3 pre cent of the population, and it’s predicted that it could reach 27 pre cent by 2015. And in some parts of the world, SNS are visited more often than search engine sites. Although the leading contenders in the UK are Facebook, MySpace and Twitter, there are parts of the world where Tweeting’ is unheard of, and where Facebook isn’t the ubiquitous phenomenon it’s become in the UK and USA.
Russians rely on Facebook replica
There were 19 million SNS users in Russia in 2009, and this figure is predicted to grow 63 pre cent by 2015. It is Vkontakte.ru which bears a striking resemblance to Facebook, and has a huge 77 per cent market reach in Russia (January 2010). Like Facebook, it incorporates various functionalities such as connecting with friends, joining groups, and updating profile content. The site also features a targeted advertising system (similar to Facebook’s). Vkontakte.ru is followed by Odnoklassniki.ru, which had 66 per cent market reach in Jan 2010.
Odnoklassniki.ru is popular amongst students, and again allows users to connect with friend and update profiles. The site also offers paid advertising opportunities such as banner advertising; however, the system is not as sophisticated as Vkontakte.ru’s.
Virtual hit in South Korea
SNS are hugely popular in South Korea, the world leader in broadband penetration. Almost 55 per cent of the population were using social networking sites at the end of 2009. Cyworld is by far the most popular site, with 90 per cent market reach. The site allows users to create their own mini homepage, or “minihompy,” with a friends list, photo gallery, and message board. Users can also create their own avatar with a living space, similar to the SIMS game.
Cyworld has caught on to Korea’s love of virtual’ products, and sells homepage skins, music, and furniture for virtual living spaces. This combined with advertising sales has generated the site hundreds of millions of dollars. Facebook only has a 4 per cent market reach in South Korea.
Latin America likely to see growth
The Latin American SNS market is also well established, with a combined 113 million unique users at the end of 2009, and it’s predicted that by 2015 the market will increase to 200 million. Although economic factors are expected to limit the growth potential of the market, Brazil and Mexico are both in the top twenty social networking markets in terms of reach, and are expected to remain.
The SNS market is very mature in Mexico, with 90 per cent of internet users using SNS, and this figure continuing to grow. Hi5 is the main contender, with 71 per cent market reach in January 2010. Created in America, Hi5 allows users to create a profile, post photos and comments, and design skins. The site has a sophisticated advertising and marketing formula, and offers targeted advertising, viral promotions and adver-games. Facebook ranks second in Mexico, with a 31 per cent market reach.
Again, the SNS market is very developed in Brazil, with over 50 per cent of the population using sites at the end of 2009. Orkut, which is owned by Google Inc. is the market leader, with a 68 per cent reach. Although the site is available in 48 languages, the site is only notably popular in Brazil and India. The SNS allows users to customise their profile, share videos and images, and rate’ their friends. Orkut has recently started to allow advertising. Facebook had a 7.7 per cent at the end of 2009; however, it has an extremely high growth rate of around 300,000 new users per month.
Like’ Localisation
To target international markets digitally, businesses need to take a localised approach to their strategies, looking at the ways in which different markets use the internet. Cultural, linguistic, and religious factors can all come into play, and can create significant differences in how countries function online. And social networking is no exception. It is true that Facebook is the global’ SNS, with a reported 400 million users worldwide by March 2010. However, the majority of these users are in Western Europe and North America. In many parts of the world where opportunities for ecommerce are ideal or that are showing signs of extremely promising growth, it is indigenous SNS sites which are proving to be more popular.
