This is why more Australian brands are not engaging in social media

Reading Time: 2 minutes If Australian CMO’s don’t have a personal competency for social media, how can they effectively assess the value and opportunities it presents their companies? If a corporation can’t collaborate with customers, how can it effectively leverage the ‘pull’ based dynamics of social media that directly supports ‘customer centric’ objectives.

Reading Time: 2 minutes

A report by the Center for Marketing Research at the University of Massachusetts Dartmouth states adoption of social media by 500 Fortune companies is static.

The percentage of Fortune 500 corporations that blogged in 2010 and 2011 didn’t change from 23%.  There was a slight increase in the use of Twitter and Facebook.  Twitter increased from 60% to 62% and Facebook increased from 56% to 58%.

 

How do these findings relate to Australian corporations?
Without conducting the same research in the Australian market, I assume Australian corporate  adoption of social media is static as well.  You could also draw this conclusion based on the current lack of participation from Australia’s top ten corporations as per the iGo2 Group post Australian Social Business Index – Part 1.

Do ANZ CMO’s feel prepared for social media?
IBM published a study titled From Stretched to Strengthened.  This global study surveyed over 1700 CMO’s that also included CMO’s operating in Australia and New Zealand.

I think this finding could explain why the number of Fortune 500 companies and Australian brands hasn’t increased. From the global respondents, 68% thought social media was a challenge they were not prepared for.  ANZ based CMO’s stated 72% felt underprepared to manage the impact of social media.

Why do 72% of ANZ CMO’s feel underprepared to manage the impact of social media?
There were two areas where ANZ CMO’s fall behind the global average that particularly peaked my interest.

The percentage of ANZ CMO’s that felt they personally had a sufficient level of social media expertise is 12%.  That compares to 25% of CMO’s surveyed globally.  HT to Jarther Taylor from IBM.

The study also states 72% of ANZ CMO’s feel underprepared to deal with customer collaboration and influence.  This compares to 56% of CMO’s surveyed globally.

If Australian CMO’s don’t have a personal competency for social media, how can they effectively assess the value and opportunities it presents their companies?

If a corporation can’t collaborate with customers, how can it effectively leverage the ‘pull’ based dynamics of social media that directly supports ‘customer centric’ objectives.

Why do you think more Australian brands are not social?

Contact Mike

8 thoughts on “This is why more Australian brands are not engaging in social media

  1. Mike

    We see exactly this same issue in our one on one engagements with many organisations in Australia. We think its not only the CMO’s who feel under prepared for social media, but in fact many in the ‘C’ suite. And an executive that feels exposed in terms of knowledge will not engage ‘without fear’. We also suspect that they realise that engagement through social channels will in fact expose their processes and the organisations lack of customer engagement.
    It is interesting that this report singles out CMO’s – as we know this is often where responsibility for social media falls with an enterprise. Often, this is the wrong place if organisations are truly going to become social businesses. And no wonder CMO’s then feel under prepared for the task at hand. But they are not alone, the vast majority of senior exec’s in Australian enterprises feel under prepared and vote with their feet – they do not participate at all!
    Thanks for the reference to the research on the Australian Social Business index. Part 2 of that analysis is coming out this week
    Will B

  2. Mike, thanks for the insights!

    Fundamental to “collaborate with customers” is the organisations ability of being able to collaborate with employees/partners/vendors to service the customer. Australian executives need to examine enabling social branding through being a social business.

  3. Hi, I am not from Australia …  but for me social media adaption is a matter of generation. Marketing should hire some Y generation people to their organization as a change agents.

  4. Australian companies are by and large less responsive to their customers, take the recent service issues with some of the major telcos over the last 18 months. Truth is small and medium sized Australain business is doing much better at tapping the power of social media to engage with their customerrs

    1. True. Even I’m from Malaysia. Similar situation happens here. Just that banks and telcos are stepping up the game. If I were to take an example, bank like CIMB has been awarded the best online banking for 2011 because they are engaging the people on the Twitter platform @CIMB_Assists:twitter. Later, they release their own mobile apps. Above all, I consider this as opportunity yet to be turned into money. 

  5. more blah blah1:32► 1:32 http://www.youtube.com/watch?v=s83DTfF97EA is this for real – CIO,CEO,CMO in the C Suite 

     blah from a company trying to drum up business for data services 

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