According to a
report by Center for Marketing Research at the University
of Massachusetts Dartmouth , Forbes
magazine Fortune 500 companies (Top 500 companies in United States ) are using social
media for their employee communications, but public-facing social media
presence is lacking the attention of the company managements. The report says
the adoption of blogs has slowed down as evident form data that 23% (114) have
corporate public-facing blogs compared to 23% (116) in 2010. There has been a
slight increase in both Twitter use (60% in 2010, 62% in 2011) and use of
Facebook (56% in 2010, 58% in 2011). Moreover in the past 4 years, the F500 has
lagged behind the Inc. 500 (fastest growing private companies), charities, and
higher education in social media adoption. The bottom 200 companies are slowing
down the adoption and highlight the fact that those ranked higher in the
Fortune 500 are more likely to adopt social media aggressively. The Fortune 500
companies are known to adopt new technologies, innovate and provide their
consumers the best products and services and are often called as Titans of the
business world.
Some of the
companies in the Fortune 500 companies are the Business to Business companies who
do not deal with the consumers directly and the Business to consumer companies
directly interacts with the consumers. B2C companies have already adopted
social media as it is one of the critical ways to communicate with the consumers
and understand their needs and opinions. B2C companies are forced into adoption
as their consumers are voicing their opinions on various social media platforms
and they can’t ignore them as it will affect their brand and organizational
reputations.B2B companies on the other hand are more regulated and they have
been slow in adopting social media. They are slowly realizing the utility of
social media interaction but they are not expected to invest significant
amounts of resources like the B2C companies. Fortune 500 companies are huge
hierarchical organizations, are bureaucratic in nature and adoption of new
technologies have to go through lot of approvals and time consuming as decision
making involves multiple departments. These organizations look for more proof
of utility of the technology and wait to see the results of adoption in other
large organizations before they adopt unlike the smaller and medium
organizations that easily adopt the social media and are more willing to
experiment with new technologies.
Fortune 500
companies are also not sure about how to integrate the social media
technologies into their organizational IT infrastructure, what are the inherent
risks involved in using such technologies, how to effectively control and
monitor their social presence, which of the tools that are available are the
best tools. Another major issue is that of the content in social media like who
should develop and maintain the content, intellectual property rights of the
content and how to share the content, etc. Encouraging participating and engaging
the consumers is also critical and when consumers voice negative opinions or
highlight the issues, companies have to tackle it in appropriate manner as it
has significant impact on the organization reputation. These companies have
thousands of employees spread across the world in various countries and they
have to be trained about the social media policy and how to use the social
media platforms according to the rules and policy. Setting up a monitoring mechanism
is also costly. Employees have to be motivated to participate in the social
media and also maintain their engagement and do not stop suddenly.
Some of the
companies are of the opinion that the traditional media presence and
communication is better than social media. These companies have already
invested heavily on the traditional media channels like, TV, Print, etc.
Adoption of Social media needs the companies listen to their customer’s voice
in various social media and then develop an appropriate social media engagement
strategy. Policy development and
implementation involves monetary resources and time which some companies are
not ready to invest in. Some of the companies that adopted social media since
the past five years are evaluating the social media engagement impact and the
ROI from social media presence and are using various social media analytics to
assess. The social media analytics has seen significant improvements in terms
of the technologies in 2011and many large technology players are acquiring
smaller players to integrate these technologies into their core offerings. It
seems the initial euphoria of social media adoption has died down and the
companies are becoming more pragmatic in terms of returns and impact.
Some of the
Fortune 500 companies do not see social media as an effective means and they do
not have any social media presence or strategy particularly the B2B companies. Some
156 companies (31%) in the Fortune 500 have neither a Twitter account nor a
Facebook presence and there has been little or no change in the number of
companies using corporate blogs, Facebook (2%) and Twitter (2%) in the last
year, according to University
of Massachusetts Dartmouth
report. But the fact remains
that the social media adoption in the small and medium companies is increasing
and this maintain the rate of social media adoption in US businesses to normal
levels as the large business organizations slowdown their adoption. With the
tightening of the budgets for 2012 due to the Euro Debt crisis and US economic
slowdown, the social media business adoption may stagnate or decline. Social
and mobile are going dominate in future and consumers are more aggressively
voicing their opinions both positive and negative and are looking to engage
more with the business organizations and social media tools and platforms provide
the best platform for the two way communication process.
Source: The 2011
Fortune 500 and Social Media Adoption- Center for
Marketing Research, University of Massachusetts Dartmouth