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More companies use social media for marketing

- Staff Writer

Published: Fri, Dec. 12, 2008 12:30AM

Modified Fri, Dec. 12, 2008 02:24PM

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During the summer Olympics, PC maker Lenovo used social-media marketing to enhance its corporate sponsorship of the games.

The company, which has a headquarters in Morrisville, gave laptops and digital cameras to 100 athletes and asked them to document their experiences. The athletes published more than 1,500 posts. Fans responded with 8,000-plus comments.

"That was a big breakthrough for us," said David Churbuck, vice president of global Web marketing, who noted that the effort contributed to a significant increase in traffic on Lenovo's corporate Web site.

DIFFERENT SKILLS

Jim Tobin runs the Cary office of advertising agency Brogan & Partners Convergence Marketing, but he chose to start a new business when he jumped into social media marketing.

"It's a fundamentally different way of thinking," Tobin said. "We're not talking about ads and press releases anymore. We're talking about starting, growing and engaging in [online] conversations. And that is a totally different skill set."

Since he formed Ignite Social Media in July 2007, the agency has attracted national clients such as Intel, The Body Shop and NatureMade. Ignite has expanded to 11 employees and Tobin said revenue this year, the firm's first full year of operation, will be "in the low seven figures."

He's also found time to co-write a book on the trend with Lisa Braziel, "Social Media is a Cocktail Party."

Social-media marketing is spreading as companies including SAS, Red Hat, Blue Cross and others recognize the benefits of blogs, online video and social-networking sites such as YouTube, Facebook, Twitter and more. According to Forrester Research, the number of social-media "spectators" -- people who read or watch social media -- has increased from 48 percent last year to 69 percent of people who venture online.

"There are tons of studies that say word-of-mouth is more effective than any other marketing, and this is essentially word-of-mouth online," said Jim Tobin, who heads Ignite Social Media in Cary and is co-author of a self-published book on the phenomenon, "Social Media is a Cocktail Party."

"People are talking about you and your brand and your issues," he added. "The only question is whether you want to have an influence on it."

Some social-media initiatives by Triangle businesses are:

* Health insurer Blue Cross and Blue Shield of North Carolina started a Web site promoting a healthful lifestyle. It featured a company executive and an author blogging as they walked 650 miles from Asheville to Wilmington, conducting fitness rallies along the way. More than 6,600 people registered at the site, walk.millionstepmarch.com, and reported walking a total of 350,000 miles. Some of those walkers blogged about their fitness efforts and posted photos, too. The insurer also used social media sites such as Facebook and meetup.com to spread the word.

* SAS has made social media part of its standard practice for marketing and communication, said David B. Thomas, who recently assumed the position of social media manager at the software company. SAS employees are posting on blogs, social-networking sites, iTunes, YouTube and more. A video featuring Santa posted this week on YouTube is generating some buzz.

* Johnson Automotive uses a modern mix of advertising. Its print ads tout that its TV ads -- featuring a nasty car salesman who's a stuffed badger -- have gotten millions of hits on YouTube, and include a Web address to the short videos.

* Online book publisher Lulu.com recently acquired iRead, a social-networking site for book lovers. The site -- renamed weRead -- features a host of content generated by the site's readers, including 1.5 million book reviews. For authors, "it's a great tool for them to sell their books," spokeswoman Gail Jordan said.

* Red Hat, the Linux software company, has posted more than a dozen videos on YouTube. The videos are put together for other purposes, such as company-sponsored events, but are amplified by appearing on YouTube, spokeswoman Leigh Day said. "We find people like to get their information from several different sources," she said.

The cost of social-media marketing pales compared to conventional advertising, although it can be on par with a public relations campaign.

"This isn't expensive, but it is manpower intensive in terms of hours spent," said Lenovo's Churbuck. His company has more than a half-dozen bloggers.

david.ranii@newsobserver.com or 919-829-4877

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