There’s a great article on Silicon.com about the dwindling interest in Twitter, and why companies should stay committed to social media. I say “great” because it’s by me :)

To read the full article, go to: http://www.silicon.com/management/sales-and-marketing/2010/03/22/is-twitter-on-the-wane-39745616/ and add your two bits to the comments.

Here’s the article….

While activity on Twitter continues to increase – the number of tweets per day is now approaching 50 million – this is largely due to an active core of one-in-five registered users who are becoming more and more engaged. According to marketing software company Hubspot, the average Twitter user in January 2010 had 300 followers compared to around 60 last July.

Twitter’s problem is adding to its 75 million users. Yes, it’s a considerable number, but in social media, scale is everything.

A report from research firm Barracuda Labs found that the number of new Twitter users grew just 0.34 per cent in December 2009, down from a peak of 20 per cent new users joining in April 2009. Hubspot’s figures show that the peak of new users was in March 2009 (13 per cent) and fell to four per cent in October 2009.

And these are not the first reports to identify the problem. A report in September last year from research firm Hitwise found that in 2008, Twitter accounted for 0.01 per cent of visits to all websites. By June 2009, this had climbed to 0.20 per cent before falling to 0.17 per cent in September.

I realise it’s pretty hard to get accurate stats on Twitter use because so many access the service via desktop software, but there is enough evidence to suggest that the number of people who want to use this social networking tool based solely on status updates which are broadcasted (i.e. you don’t really have control who follows you), has reached its limit.

Can you hear me?

Twitter users may have already noticed that it’s getting harder to be heard. Some highly engaged social media practitioners I know, tweeting many times per day, are reporting that it’s getting more and more difficult to grow their followers organically, especially with people who are genuinely interested in what they have to say. Instead, they are being followed indiscriminately by people who want to gain social capital, with a trigger-happy ‘retweet’ finger.

The problem may be that the noise has reached a threshold. The cacophony created by status updates from hundreds or thousands of people, proffering links to interesting articles, dipping into conversations half-way through and dull missives about lunchtime sandwiches, is obviously getting too much for some folk.

To filter out the noise, Twitter users tend to engage or converse with a smaller number of people than their following count would imply. There’s some science behind this – it’s called Dunbar’s Number, a concept coined by cognitive anthropologist Adrian Dunbar who posits that the average person cannot sustain more than 150 friendships. His work correlates with animal studies showing that this magic number crops up all over the animal world too.

Twitter: Not just for status updates anymore

So what should we read in to this? Is Twitter really on the wane?…

It’s hard to say just yet but one good sign for Twitter’s long-term health is that Twitter itself seems to recognise that being a tool that only distributes status updates is a one-trick pony. All kinds of social media from Facebook and LinkedIn to web giants like Yahoo! and Google are homing in on status and buzz. And they have a lot more to offer than Twitter.

This is probably why Twitter recently announced @Anywhere, which will allow Twitter feeds to be linked into other websites using a common API. These sites include AdAge, Amazon, Bing, Citysearch, Digg, eBay, The Huffington Post, Meebo, MSNBC.com, The New York Times, Salesforce.com, Yahoo! and YouTube.

And if you are a LinkedIn user, you’ll know that you can already get your Twitter feed on your LinkedIn profile.

Ultimately what is happening is status updates are being commoditised, which I wrote about in more detail in a recent blog post about the future of social media.

Now I don’t think Twitter is necessarily a lost cause and will go the way of Friends Reunited. It is still a very powerful tool, and one that should not be ignored by anyone working in sales, marketing, PR, customer service or product development.

More importantly, status updates are here to stay, whichever the social network they originate from.

Keep listening and reacting

So businesses still need a Twitter strategy. But really what they need is a strategy for listening and reacting to all the social media conversations about you – whether they are on Twitter, blogs, Facebook Groups, forums, Posterous and so on.

Status updates are a revelation: you can hear what people say about you and your competitors, you can discovers flaws in your products that you didn’t realise were there, and you can find out exactly where and when customers are disgruntled.

And you can act on what you hear: change the product, contact the customer, warn the helpdesk and so on. (Marketing guru Olivier Blanchard has some interesting advice on how to turn social media listening into pan-organisational acting.)

But let’s remember the Dunbar Number and ultimately, that social media is a personal media, and companies are not individuals. You can listen, you can broadcast offers, you can respond to complaints, but don’t expect social media users to want to be your friend. They can only engage with a few people at a time, and unless you have the resources to develop a one to one relationship with your thousands/millions of customers, you will end up disappointed.

You can find other Silicon articles by myself here: http://www.silicon.com/search/stewart+baines.htm and by Anthony here: http://www.silicon.com/search/anthony+plewes.htm

So how did social media fare in 2009, and what can we look forward to in 2010? If Facebook could be considered a bell-weather for social media, then 2009 was an important year, because it broke through 300 million users and became cash-flow positive for the first time. Although this of course doesn’t mean that it is profitable – yet.

Analyst Gartner reckons that Facebook will actually strengthen its position in the future, because it will help different social networks operate with mechanisms such as Facebook Connect. In fact, Gartner believes that interoperability will be the most important trend in social networks over the next two years.

All business sectors embraced social media in 2009. Look at newspapers; criticised by Gartner in early 2009, the vast majority of newspaper sites now have social media widgets to help their readers share information. The Telegraph, for example, has a ‘retweet’ button, which handily counts the number of times readers have retweeted its articles.

Away from the mainstream, social media turned up in all sorts of places. It aimed to stop the spread of swine flu, got jurors into trouble in court and even saw an innocent man hauled down the police station to be questioned about terrorism offenses.

So what for next year? Well Forrester’s Josh Bernoff believes that 2010 is the year when marketers will focus less on fuzzy social media metrics and look for proper measureable marketing metrics. Getting followers and friends is all very well, but if businesses don’t use these networks or connections for any obvious end, then the money is wasted. In fact it can be counterproductive if the connections get bored or disillusioned with the enterprise’s business.

What do you think?

Here’s an extract of an article that Simon Marshall and myself wrote last week for Orange Business Services on their Orange Business Live blog…..

Social networking usage in the workplace has gone through the roof as Generation Y employees tap into social media such as Instant Messaging, Twitter, Facebook, SharePoint and WordPress to interact with colleagues, partners and customers. As enterprises explore the legitimate use of social networking tools to gain customer intimacy and improve relationships, there are a number of factors that can make deployment more effective

Corporate social networking usage has grown out of message boards, Lotus Notes and intranets and is embracing collaboration tools and the social Web to increase productivity and profitability.  More corporates are using social networking as a response to the rise in globalization and dispersed workforces, and as a way of opening access to business-critical skill sets and information. But, there are a number of reasons why corporates must focus on achieving specific, measurable objectives in a corporate-created social networking environment that encourages positive rather than negative results.

Firstly, there’s significant evidence that social networking sites blur the lines between business and personal relationships. Although this might cause inappropriate behavior as personal lives move into the workplace, it’s more likely to cause ethical dilemmas for staff and exposure of valuable corporate brands to the vagaries of individuals or user groups. Companies can therefore struggle to delineate what social networking use is appropriate for their staff without over-reaching and denying access altogether to common tools such as Web browsers. There is some evidence to suggest that Web-browsing decreases productivity, but most firms deem it fair to allow access to a variety of Web sites and social Web applications such as Facebook, LinkedIn or Plaxo during work hours.

Who owns social networking within the organization?

Secondly, firms can fail to effectively deal with this situation because no one corporate discipline fully ‘owns’ social networking. Sometimes the IT department has control, sometimes Human Resources oversees this function. In practice it’s best to place the technical management of the social networking domain with the IT department, but have Human Resources, Sales or Marketing report to the CIO or CEO on the business benefits of such tools. IT and the CIO must meet regularly to ensure that tools are not being misused and to maintain a common fair usage policy for all employees. Problems commonly arise where listed firms must communicate material statements to their shareholders first, but run the risk of overzealous employees doing their job for them and releasing information to the general market illegally.

Finally, firms can struggle to devise a system that measures ROI. This can stem from a lack of clear objectives for the use of social networking tools. Although interaction with customers and partners is relatively straightforward to rationalize, companies must define their own measurement system that places value on employee-to-employee interaction if they are to derive full productivity benefits. Understanding how social networking tools can be used to boost discrete corporate functions helps to define who uses which applications, and with what end result.

Common internal uses include live communication and interaction based on presence applications; staff training, mentoring and performance monitoring; project collaboration; information sharing; knowledge management; social mapping for succession planning and unified communications. External uses include public relations and marketing products, events, ideas and new services; corporate social responsibility dissemination; market or competitive research; staff productivity; recruitment; project management.

Best practice for social networking

In an ideal world, the best way to tackle the challenges of introducing and benefitting from social networking is for corporates to build their own social networking framework that includes all the productivity tools employees need without recourse to them using their personal tools at work. Software developers such as Jive, Yammer, Social Text, YourMembership.com, Select Minds, SocialGO, WackWall and Ning offer different approaches.

Industry heavyweights such as the Cisco Collaboration platform provide options for big multinationals that include telepresence, unified communications and customized Instant Messaging options. Google Wave offers a centralized Web resource for collaboration across text, video, and document creation and sharing that provides an interactive record of social networking sessions.

In order to properly deploy any social networking system, best practice dictates that:

• There be a plan in place to monitor and mitigate potential reputational risks associated with inappropriate social networking site usage
• The divide between a right to know what employees are expressing online with their right to retain privacy is mitigated, and kept in context by helping them understand appropriate usage
• A code of ethics should be maintained and updated regularly, such as this one from Marks & Spencer
• Discussion of the use of social networking in the corporation must be elevated to the board level, as it is a strategic issue.

How social media adds value

• Organizational and geographical boundaries are bridged, with corporate information and discussion taking place on central, shared resources such as blogs and wikis, rather than on email or on the phone
• Teams can easily find the information they need, because social networking adds context, tags and social bookmarks to data that helps others find it more rapidly
• Employees with specific skill sets can easily connect with co-workers through user profiles and expert searches, and gain information that helps them do their job more productively.

Social media business leaders

• Best Western sponsors ‘On The Go With Amy,’ an evolving travelogue
• IBM Bloggers are encouraged to post to the site
• Coca-Cola employee Phil Mooney blogs on Coca-Cola Conversations
• Ford has pioneered Social Media Press Releases to communicate news using a variety of formats
• Kodak has dedicated a whole site to the development of social interaction with potential customers called 1000 Words.
• …As does Johnson & Johnson
• The New York Times has launched TimesPeople Beta, its social networking community
• Starbucks is currently asking its customers how to run the company, through My Starbucks Idea
• Suppository brand, Anusol, has launched a Facebook community
• MTV has extended its brand into the lives of viewers by offering an online interactive resource called Think MTV that deals with social issues.

The full article can be found here

News from IDC that 6000 technology marketing executives will have lost their jobs by the end of 2009 is hardly a surprise.

You only have to glance at the recent figures from Gartner about 2009 IT spending to see that those that are responsible for marketing, branding and selling kit are going to be in for a rough time.  They paint a picture of the IT industry’s “worst year ever”, with worldwide IT spending falling by 5.2% during 2009,with enterprise IT hardest hit, with a fall in spending of 6.9%.

IT services declined during 2009 by 3.6% to $781 billion, global telecom spending was down 4% to $1.9 trillion, software spending fell 2.1% to $197 billion. The biggest kicking was felt in hardware (servers, storage, network equipments, computers, printers) with sales falling 16.5%, to $317 billion.

(Please bear in mind that this time last year during the worst of the economic crisis, Gartner estimated that the worst case, global IT spending would grow at 2.3%. If you don’t remember this bullish optimism, check it out: http://www.gartner.com/it/page.jsp?id=776112 )

So it’s not the fault of marketing departments then? Well, according to IDC, they have contributed to their own demise. Yes, IT vendor marketing budgets will have declined by 8.3% during 2009, the first decrease in year-on-year marketing spend since the dot-com bust of 2001-2002.

But what money has been available has often been poorly spent, with inefficiencies from product-based marketing not being aligned with brand, sales and corporate marketing. IDC recommends more thematic marketing campaigns, and shared services to remove redundancies.

Over the past decade, we have worked with many of the world’s largest (and smaller) IT organisations, and we’ve experienced these inefficiencies first hand. Many of our clients really do understand integrated marketing, and are a pleasure to work with, but others (ex-clients) can be ingredibly disorganised with product, brand, corporate and PR pulling in opposite directions, with completely different messages and timescales. Projects get abandoned because they are not cleared, audiences recieve mixed messages and marketing is the first to be cut when lean times begin. It’s a pretty simple rule for success though – recognise that sales and marketing are inexorably linked, that your brand must be apparent in everything you do, and be committed to communicating your messages when times get harder. Now, more than ever, your customers need you to be confident.

After what seems like an awful long time in planning, we have launched our new web site. We will be updating the site regularly with advice articles on technology and marketing, blog entries on topics that interest us, and also bring together material that we have published elsewhere. We already include three advice notes to kick you off – on Twitter, SEO and Google. In addition we’ve been doing more audio and video work and will publish some examples of our interviews on a range of topics including vehicle telematics, application acceleration and service management. Please feel free to contact us on any topic at anthonyplewes@futuritymedia.com and stewartbaines@futuritymedia.com.