The Social Media Revolution & Statistics

This is the first of a three part look into how social media is impacting consumers buying patterns.

The Industrial Revolution ushered in fundamental changes in agriculture, manufacturing, transportation, economic policies and social structure in England between the years 1760 and 1850, and the world was propelled forward in monumental ways.

It’s 2011, and the world is already in the midst of another revolution – one that is likely to enact greater changes in a much shorter span of time. It’s the Social Media Revolution, and it’s here to stay.

Here are some statistics to show just how deeply enmeshed social media is in our society – and bear in mind, it only became part a mainstream part of society about five years ago:

• Years it took Radio to reach 50 million users: 38
• Years it took TV to reach 50 million users: 13
• Years it took the Internet to reach 50 million users: 4
• Years it took the iPod to reach 50 million users: 3
• Years it took Facebook to add over 200 million users: Less than a year
• If Facebook were a country, it would be the world’s 3rd largest
• 25% of search results for the World’s Top 20 largest brands are links to user-generated content
• 60 million status updates happen on Facebook daily.
• Facebook tops Google for weekly traffic in the U.S.
• Lady Gaga, Justin Bieber and Britney Spears together have more followers than the entire populations of Sweden, Israel, Greece, Chile, North Korea and Australia
• Social media has overtaken pornography as the top activity on the internet

These statistics came from Erik Qualman, author of Socialnomics: How Social Media Transforms the Way We Live and Do Business, who has also said, “We don’t have a question of whether we do social media, the question is how well we do it.”

So what does this mean for business?

Take a look at the following business insights compiled from the firm SocialWare:

• 79% of the largest Fortune 500 firms use Twitter, Facebook, YouTube or corporate blogs to communicate with customers and other stakeholders. (Burson-Marstellar, 2009)
• 69% of respondents report that their companies have gained measurable business benefits from social technologies, including more effective marketing, more innovative products and services, better access to knowledge, lower costs of doing business, and higher revenues. (McKinsey Global Survey, 2009)
• A Facebook fan can be worth about $136.38. (Syncapse, 2010)
• Fans are 28% more likely than non-fans to continue using a brand. (Syncapse, 2010)
• Fans are 41% more likely than non-fans to recommend a fanned product to their friends. (Syncapse, 2010)
• 54% of companies have at least one Facebook Fan page. (Burson-Marstellar, 2009)
• An active fan may participate with a brand 30 times and make ten recommendations in a year. (Syncapse, 2010)
• On Facebook when someone “likes” a brand’s Facebook page, purchase intent increases 4X versus a regular Facebook ad, and there is a 24% increase in the number of users engaging with a Facebook ad campaign due to the social ads. (Nielsen and Facebook, 2010)
• A Facebook friend referral makes two-thirds of US Facebook user more likely to purchase a product or visit a retailer. (eMarketer and Morpace, 2010)
• Fan pages are used by 41% of US Facebook users to display their favorite products. (eMarketer and Morpace, 2010)
• The percentage of Twitter users who follow brands is over three times higher than similar behavior expressed by social networking users in general. (“Twitter Usage in America:2010”)

But statistics of success aside, Qualman drills home the point that successful companies in social media act more like Dale Carnegie and less like Mad Men: they listen first, and sell second.