How Does Social Media Create Value for A Marketer?

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Social media works differently than traditional advertising. It creates value in part through engaging those already interested in the brand, and encouraging those people to share their brand enthusiasm with others. And, when people do pass along indicators of brand affection, this influence in others. Marketing Evolution has quantified this pattern of impact for the first time in 2007, and termed it “The Momentum Effect.”

This research has been highlighted in a slew of books, and featured at the Word-of-Mouth conferences, and paraded around by social media advocates as quantitative proof of the value proposition for social media. The research has been broadly replicated for many different brands, in many categories. While social media can take many forms, and the value of each differs across the spectrum, there are common principles of the Momentum Effect visible in just about everything social.

Here is the original paper: MomentumEffect_RexBriggs

Here is a somewhat primitive video explaining the social media (we originally did this for internal use only, but if you’d rather watch for 10 minutes than read, it covers all the core materials as in the paper).

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