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Social networking website Twitter - Source: ONE News -
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Kiwi firms are warming to the use of social media though a lack of understanding is holding some back, according to a new survey of marketing professionals by the Communication Agencies Association of New Zealand (CAANZ).
Social media platforms such as Twitter, Facebook and Bebo let people chat online and share information such as photos and videos.
The CAANZ survey found that 70% of respondents felt social media was a good way to communicate with customers.
CAANZ Digital Leadership Group chairman Tony Gardner says the online space is increasingly popular, with Nielsen Media research on channel usage showing that 20.5% of time is now spent on the internet compared with 31.6% listening to radio and 47.8% watching television.
The pay-off for getting involved, he says, is an increased awareness about what customers, or potential customers, want.
"There's no question that to have an insight into what they're saying to each other on these platforms can help you understand what you should do to make them happy customers," he says.
While there is increasing acceptance of social media, the survey found a reluctance by firms to spend money in this space. Around 85% of businesses plan to invest 5% or less of their marketing budget on social media this year.
But Gardner says the flipside is that businesses are in fact planning to invest in social media platforms. The problem for many is a lack of understanding of the medium, and allocating qualified staff.
He says companies need to hire people who are interested in social media or look through their own company and see who is active in the social media space and get them involved. This is because it is crucial to use social media well and companies need people who understand the "unwritten rules" of these platforms.
"There's a bit of a trick to do it. It's no longer the brand space but a communal space, and so the brand has to realise that they're in a conversation and to play by the rules of the community," he says.
Facebook is currently New Zealand's number one social media platform, outstripping others is size and growth.
Gardner expects social media to increasingly become a normal part of corporate marketing.
CAANZ is holding a forum on social media in business on March 11 in Auckland.
