Market Research Shows Lack of Maturity in the Use of Social Media by Large Organizations

The survey collected almost 200 responses from companies with median revenue of $333 million. Fifty percent of the respondents work at companies that have 1,000 employees or more and 62 percent come from B2B organizations.

Overview

"Social media today is like the Web was in the 90s - everyone knows they need to use it but they aren't sure how," commented Gerardo Dada, senior director of product marketing for Vignette. "As a result, very few companies have a strategy in place, including guidelines, processes and metrics, to succeed long term. The interest and resources are there, but on a tactical level only."

The Importance of Social Media

In a relatively short amount of time, social media has transformed how businesses operate and companies are eager to experiment. Fifty-five percent of those surveyed said that Web 2.0 priorities are more important than or as important as traditional priorities. However, only 14 percent have two or more years of experience with using social media and 40 percent of those surveyed have no social media process or strategy in place.

Companies are pumping up their budgets when it comes to social media. Seventy-one percent of those surveyed will increase social media investments in 2009 and the average increase in the investment is 40 percent.

Why the uptick in spending at a time when budgets are being cut? According to Dada, companies understand that the Web is the most important channel for customer engagement and that it can be used to increase revenue and save money. With these thoughts in mind, social media has exponential potential as an effective marketing tool with a real impact on the bottom line.

"Companies hear the buzz and they see what their competitors and peers are accomplishing," said Dada. "More importantly, customers and prospects expect companies to adopt social media tools. The days of one-way communications are gone. Social media is changing the way companies and people interact."

The Use of Social Media

According to the survey, a majority of social media activities focus on increasing awareness, engagement and lead generation.

Key drivers for social media efforts include:

-- 75% - Marketing communications and branding

-- 67% - Marketing and/or product marketing

-- 56% - Customer relations

-- 35% - Support

-- 38% - Community and involvement

-- 14% - Other (knowledge management, recruitment, research and sales enablement)

It is not surprising that marketing departments are leading the majority of Web 2.0 initiatives (69%), with IT (12%), HR and PR (11%) close behind.

The Effectiveness of Social Media

Social media budgets are expanding, but that doesn't mean organizations are seeing real results, according to the survey. Only 12 percent of those polled rated their Web 2.0 initiatives as effective. Dada notes that this is a testament to the lack of maturity of enterprise social media use.

"Companies feel that social media tools should be a part of their marketing and branding initiatives, but are still unsure about how to use them and how to measure effectiveness," stated Dada. "With the enterprise adoption of social media so new, how do companies know how to develop a successful Web 2.0 approach? There's going to be a learning curve."

Webcast

Dada will lead an in-depth discussion of the survey results on June 10 at 2 p.m. ET. To register for the Webcast, visit www.vignette.com/bestpractices. Survey results will be available to all that attend. If you are a member of the media and would like a copy of the results, please request one by contacting pr@vignette.com or www.vignette.com/twitter.

About Vignette

Vignette provides software and services that deliver the Web's most dynamic user experiences. The Vignette Web Experience brings rich media and engaging content to life for the world's greatest brands. Vignette is headquartered in Austin, Texas, with operations worldwide. Visit www.vignette.com.

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SOURCE: Vignette Corporation

Vignette Corporation 
Melanie Brenneman, 512-741-4871 
pr@vignette.com