Has the slow economy pushed more people to social media?

Slow Economy and B2B Social Media

B2B social media and b2c social media are playing a big role in the slow economy. Like the Depression of the 1930s, misery loves company. Today, company is finding itself on business blogging sites, Facebook and Linkedin.

They say a man is rich who has friends. What about a company with fans?

There aren’t many internet users who remember seeing Charlie Chaplin’s movies when they debuted in theaters. Thanks to the internet, though, just about any user can watch Chaplin ham it up as the Tramp who faced many of the same challenges as his original audience.

During the Great Depression, poor folks watched the poor guy do his best to find a job (and keep it), fix up his house (err, shack), and woo the lady of his dreams. The audience had something in common with Chaplin’s characters, so they got the jokes, and the jokes brought them all together.

Of course, the Depression was no joke.

During these modern days we’re slogging through our own recession that doesn’t offer much to laugh about. A lot of Americans are facing those same struggles with work, housing, and even relationships. Just like Chaplin’s films portrayed the angst of those times, more and more people today are sharing the anxiety and worry of these modern times. Only we’re not doing it with slapstick and silent movies. We’re posting on blogs, sharing photos, and twittering.

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According to a recent trend report from Netpop Research LLC, online social networking has almost doubled since 2006 while the economy has only weakened since then. Netpop reports that about 3 out of 4 web users are personally sharing over the internet by contributing to blogs, rating products, uploading photos. etc.

Today about 29% of US broadband users communicate with each other specifically through social networking sites. Tough times do bring people together, and the results of this report point to even more online sharing as these recession days continue.

What This Means For Business
Commiserating with like-minded people can bring relief and comfort, but it can also impact our decisions. We aren’t sheep, blindly following anything willing to lead, but when every penny counts, it’s good to know how friends made similar choices.

While we’re updating microblogs and profile photos, we’re also rating products and declaring ourselves as fans of certain services. While we’re connecting through online chats, we’re also bidding at online auctions and sharing the scoop on great deals.

Netpop’s research revealed that social networkers currently spend more money online than “non-contributors,” and that they are likely to rely ever more heavily on the recommendations of their fellow networking media participants as this recession intensifies.

That’s why business owners need to get involved in social media. Reaching out to their existing customers who are already participating in venues like Facebook, LinkedIn, and Twitter.com will bring them into an ever-increasing network of contacts on the same wave length.

Just as Cate Riegner, VP of Research at Netpop Research, LLC, noted, “Brands that experiment in social advertising now will be in the best position to leverage these important media channels when the economy turns the corner.”

And, rest assured, this economy will indeed turn the corner, just like Chaplin always bounced back from that slapstick fall.

Paul is the President of Professional Blog Service. PBS works with clients making strategic investments into business blogging, social media and search engine optimization.