Ad Age had two important articles about social media buzz at Coke back in March.
Coke which created headlines when its CEO indicated that it had moved 20% of its marketing budget to social and digital media in 2010, has more Facebook fans than any other company. In a recent study quoted in Ad Age, Coke found that online buzz has no measurable impact on short-term sales.
The company did find that online display ads work about as well as TV, but the finding on online buzz is deeply troubling as the focus of much “organic” social media efforts is to create buzz.
A couple days later Ad Age had an article by Wendy Clark, Sr. VP of Marketing at Coke who argued that marketing campaigns must be integrated and that social plays an important role in the combined marketing efforts at Coke.
Famous Brand vs. Startup?
The social marketing world eagerly awaits more studies and analysis of social media effectiveness. Does social media matter???
One thing to kept in mind is the unique brand awareness of Coke. Everyone in the US knows Coca-Cola; citizens of Mongolia have probably made up their minds on the merits of Coke vs. Pepsi. How much does buzz matter when everyone knows the product??
Social media buzz is responsible for the first new threat to Gillette’s shaving dominance in some time. A single viral video created a buzz that has fueled the upstart: I still enjoy watching this video.
Does buzz affect start-ups vs established firms or famous brands vs. new brands differently?