So Who’s Making Money in Social Marketing?


Dell and others are committed to Social Marketing
Dell and others are committed to Social Marketing


Driving Revenue By Using Major Social Platforms:

In the current state of Social Marketing craze companies using the social platforms are potentially making more money than the platforms themselves.  Mobwars for example,  is reportedly making $22,000 per day with a projected $15 million year from their Facebook and Social marketing campaigns. Super Rewards have one Facebook application that reportedly brought in $1 million in its first week of launching. Super Rewards offers participants a revenue sharing split that ranges from 50/50 to as high as 90% which goes to the publisher. So these kind of revenue sharing models allow practically anyone with knowledge of something to get online and start making money.  

Of course MySpace was purchased by NewsCorp for $580 million back in 2005 and then Google quickly used their platform and helped them monetize the acquisition by closing a $900 million advertising revenue deal. MySpace is reportedly making about $2.17 per member per year from advertising, spotlight ads and regular banner advertising. There expansions into music, video and gaming models are still being proven out.

Last year Dell announced that they attributed over $ 1 million dollars in revenue to their Twitter account Dell Outlets. This summer they announced that they have driven over $3 million in revenue over the past 2 years from their Twitter account activity. So how do they do it? What is their secret?  Well they do a few things very well. First they take it seriously. They staff the social marketing positions and are consistent, with regular postings throughout the week. Second they offer real value to their followers in their posts with tips and advice and Twitter exclusive discounts that give people a reason to follow them and care. And it is working, with over $3 million in sales, 600,000 followers on twitter and traffic growth to their websites from Tweets to their promotions they have tapped into a way to connect with a group of customers and build loyalty.

Being a bit of a measurement hound myself let’s take a look at how this measures up. They invest in posting 140 characters or less  6-10 times per week on a free web service (Twitter) and they generate over $3 million so far for their efforts, They also  increase their web traffic and they build a loyalty program that attracts over 600,000 followers. I’d say those metrics look pretty good.

Lionel_Menchaca, Chief Blogger at Dell posted the following Social Media direction on the Dell community site:

The Future of Dell in Social Media

Those of you who have followed Dell’s social media journey know that we started these efforts just about two years ago at this time when Michael Dell himself asked our team to find Dell customers in the blogosphere in need of support so we could provide it to them. We’ve grown a fair amount since then, and I thought this might be a good time to provide a framework for what’s coming next.

Here are four main areas we will continue to focus on as a team. I’ll be blogging about various aspects of each moving forward (along with other Dell bloggers) as we start to make inroads against them.

  • More Conversations – This is really about expansion, and you can expect it in two ways: more languages and more group blogs. Focusing on Direct2Dell, many of you already know that we have a few Dell blogs in Chinese, Spanish and Norwegian. There will be more languages coming soon—with Japanese most likely coming next. The other type of expansion is with group blogs. You may already be familiar with the Dell Shares Investor Relations group blog and the Cloud Computing group blog we just launched a couple of weeks ago. By the end of this week, we hope to roll out Inside IT, which will be a group blog about all hardware and software for businesses and corporations—everything from laptops to servers and storage, services, systems management and more. Several other group blogs already lined up after that.
  • Ease of Use – This also applies to things on a couple of fronts. First off, we need to make our social media tools easier to navigate and use. Part of the way we hope to get there is to drive more consistency across our social media properties—we’re working on that now. The second part: we need make it easier for you to find information you’re looking for. Consistency will help, but this really requires innovative thinking. An example is something we’ve recently introduced on the Dell Community Forum called Accepted Solutions. I’m pumped because it empowers our customers to show other Forum readers what response fixed their issue in a way that’s pretty easy to spot. More on that coming soon.
  • Collaboration – This is bigger than the blog. It encompasses all of our social media properties and then some. Over the past two years, we’ve built some listening posts that open up lines of communication between Dell and our customers. Many times, we get feedback from customers via monitoring conversations in the blogosphere, on Direct2Dell, the Dell Community Forum or IdeaStorm before they show up in our call centers. But a pipeline for customer feedback is useless if we don’t act on that information. Internal collaboration is vital to our long-term success. Without it, we simply won’t be able to keep up with the volume of feedback we receive through social media every day. Most importantly though, doing it right will mean a quicker response from Dell to customers whether you’re trying to fix a technical issue, or waiting for us to implement a great idea that you have shared through IdeaStorm. There’s a lot to this topic… for a bit more background, take a look at Shel Israel’s recent post about social software in the enterprise, which was prompted by a software-related post from Dennis Howlett.


  • Community Meets e-Commerce – In my view, all of our efforts in the social media space should empower our customers. Speaking of specifically, it’s clear that we need to do a better job of giving customers a chance to influence content on the website. I think Jeremiah Owyang’s concept of the Irrelevant Corporate website is right on target here. In the past, much of focused on mainly on e-commerce activities, while community tools resided in an isolated part of the website. In my view, there should be much tighter integration between community and e-commerce. We’ve taken some small steps in this direction like introducing ratings and reviews functionality in many countries. More on that in the near future. 

Warren Raisch Social Marketing Success Stories Post : October 22, 2009

One thought on “So Who’s Making Money in Social Marketing?

  1. I’ve learn some excellent stuff here. Definitely worth bookmarking for revisiting. I surprise how a lot attempt you put to make this kind of excellent informative website.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s