Networks - while they've always been there (as Barabasi says: "Networks are present everywhere. All we need is an eye for them") - are growing in prominence in disciplines such as economics (Beinhocker), education, business (Verna Allee's work with value networks), politics, etc. Obviously, network theory has long been prominent (in concept, if not in name) in biology, sociology, and physics. Many outside of those fields are now beginning to see the underlying network architecture in their own discipline...and in the case of business in particular, are starting to use "network thinking" to market their products and conduct research. To broaden my own conception of network applicability, I've been following an interesting blog by Jay Deragon on the relationship economy - looking at the business and personal implications of networks.
Posted by gsiemens at August 9, 2007 10:01 AM | TrackBackIn a post last month titled "Advertising Factors" (http://jayderagon.com/blog/?p=96) we argued that the traditional marketing approach doesn't fit in the social networking space. Our strategic position was that we, as individuals, are the brand and advertisers reach to others is through individuals. Our premise was validated yesterday will a release from Forrester Research and Blast Radius, a leading advertising agency. See the summary of their finding below which clearly demonstrates a "shift" in thinking which when followed by other shifts paves the road to the Relationship Economy.
Huge audience
The report emphasises that “social networking site users represent a huge, attractive audience” and notes “most marketers salivate at the tremendous reach of social networking sites like MySpace and Facebook, which were visited by 57 million and 14 million users, respectively, in April in the US alone.
Marketing needs to turn itself on its head
“Forrester has recognised much of the thinking that currently underpins Blast Radius’ strategy. During the past 10 years, the evolution of the Internet has dramatically changed how organisations interact with customers," said Gurval Caer, Blast Radius president and CEO. “Companies are recognising that traditional marketing approaches like advertising are less effective today and so marketers are struggling to deliver value. People no longer want ‘interruptive’ brand communications – they want interactions with their peers and true value from companies through Facebook applications or communities for sharing ideas and experiences.”
"We believe that marketing needs to turn itself on its head. The goal should not be messaging customers, but rather should be building relationships from the first moment of a delightful experience that will make people's lives easier, better and richer," added Caer. "Thinking and interacting in this way will help marketing executives deliver more meaningful and relevant experiences to customers and stronger business results to CEOs. The issue as Forrester has highlighted, is that only a few agencies have the capability to allow marketers to take full advantage of this change."
We love it when the market validates a factor of the Relationship Economy.
For the rest of the story go here http://jayderagon.com/blog/?p=176
What say you?
Jay Deragon
Social Networking Strategist
www.linktoyourworld.com
Relationship Economy.. With Whom and What: http://www.relationship-economy.com
My Linkedin Profile: http://www.linkedin.com/in/jayderagon
My Facebook Profile: http://www.facebook.com/profile.php?id=572261413