Social media growing fast but hard to tame, AA, McCann, Quaxar experts say

McCann’s Giacomo Bertaina is in charge of digital stratey for McCann Worldgroup in Miami

For a look at how social media is revolutionizing business and communications, consider this: If Facebook were a country, it would rank third in population worldwide, with more than 400 million people, trailing only China and India and surpassing the United States.

WorldCity President Ken Roberts presented that statistic at the April 30 meeting of Global Connections, where several dozen executives discussed Facebook, Twitter and other social media and how to use those tools to expand business in Latin America and the Caribbean.

For many companies, social media is seen as just another marketing channel, joining TV, newspapers, radio and the Internet as the “latest thing in digital marketing,” said Giacomo Bertaina, digital strategy director for McCann Worldgroup in Miami.

But every medium has unique strengths, and social media works best as a way “to build loyalty and communities of clients,” said Leonel Azuela, managing director of customer loyalty company Quaxar. He offered the example of a hairdresser. Clients choose salons for their coloring and cuts, but also for coffee and conversation. Traditional media tends to promote the haircuts. Social media focuses instead on the coffee and conversation, keeping clients in the loop about events, specials and trends, he said.

American Airline’s Christine Valls makes a point as fellow panelist, Quaxar’s Leonel Azuela, looks on

American Airlines uses social media in Latin America mainly to sell tickets and promote destinations, but it has found customers use it surprisingly often to send queries about service. They will often inquire on Facebook about how to redeem frequent flyer miles or book reservations, said Christine Valls, e-commerce manager for Latin America and the Caribbean.

Answering those client requests in a timely manner and in a conversational tone — not with formal corporate speak — takes resources. “When you open the channel, you have to be prepared to respond. You have to have the headcount,” Valls warned companies that are just starting out in social media.

Burger King’s marketing director for Latin America, Carlos Ribas, talked about BK’s use of social media

The payoff can be big — at least in terms of marketing exposure, Florida International University has learned. Three years ago, the school began a campaign to attract “uncommon thinkers.” It first focused on e-mails, then developed a game on its Web site to test uncommon thinking and finally, added a Facebook page for users to play the game, share it and comment on results. The website took two years to draw 3,000 game-players, but Facebook in only 10 months topped 40,000 players, said Joel Cloralt, FIU’s e-marketing coordinator and social media communications manager.

But how can companies quantify the return on investment for social media and make the case to finance departments that they need extra resources?, asked Yuda Saydun, president of ClimeCo.

Not easily yet, panelists agreed. Some calculations are clear, such as sales generated from a promotion offered only on Facebook or mobile devices. But there’s also a cost for not acting, when other companies are building communities and consumers flocking to social media anyway.

Indeed, businesses might consider a different measuring stick for the social media age: return on engagement, said Felix Leander, lead digital strategist for communications for communications company Burson-Marsteller in Miami. Companies that engage can build customer loyalty and spur positive publicity; those that don’t risk negative comments on blogs and networks, Leander said.

What’s the cost of people speaking negatively about your company versus positively?, Leander asked. The difference matters greatly in case of a crisis, such as an accident or product recall.

Discovery’s marketing director for Latin America, Salomon Levy, uses social media for contests

To start in social media, companies are wise to focus on specific and strategic goals, participants advised. Discovery Networks Latin America/US Hispanic targets promotions of its TV shows, often offering contests for viewers. The company also invites bloggers to press events and provides them inside information to build a following with online communities and expand its reach beyond traditional media, said Salomon Levy, Discovery’s marketing director for the region.

There are limits, however, to how much a company can control on social networks. “It’s the public that makes things work” on the new media, not corporations, Levy said. Corporate marketers must recognize a shift “from having control of the message to having influence,” said Burson-Marsteller’s Leander. “You have to embrace losing control,” added American Airlines’ Valls.

Adobe’s director of Latin America and the Caribbean, Marta Clark, asked how companies are dealing with protocol across departments

So far, there’s no one blueprint for success in social media, panelists said. The medium is so new that many companies rely on trial and error. Yet the potential for business is clearly soaring. Professional network LinkedIn, for instance, took 16 months to reach its first 1 million users and now adds 1 million users every 11 days — highlighting the revolution underway for marketing, said WorldCity’s Roberts.

Global Connections is one of six event series hosted by WorldCity that bring together executives to discuss international business. The Global Connections series is sponsored by Florida International University’s School of Business and by Waterford at Blue Lagoon. The next event in the series is set for June 25.