Intentions of Corporate Social Media

Why are companies like Target, Coca-Cola, and Dell using social media sites like Facebook and Twitter to engage users?  Is it to promote a brand, use data mining techniques to learn more about their customers, or to generate sales?  Maybe it's all three.
I recently read an article on ZDNet written by Tom Foremski titled "Corporate social media is not social - it's sales media."  This headline says it all to me.  While some organizations may create social media profiles to generate goodwill among their publics, even this intention has an end goal - to increase the bottom line.

Why Are We Public Fans?

People become fans of organizations they like on Facebook.  (Actually, I think you "like" the things you like on Facebook now.)  Why do we do this?  It goes beyond showing support by spending our dollars at the cash register.  Do we do it to show people what we like in our personal lives?  To get the inside scoop from our favorite companies so we can be "in the know"?  To be informed of sales?

I think there are two main reasons for being a fan of/"liking" a company on Facebook:

• Show that you like the company (for yourself; for your friends)
• See what's going on with the company (new products, sales, news)

In return, corporations get a lot in return for that one little click of a "like this" button:

• Overall number of fans/"likers"
• Demographic information of each individual
• Other information that can be data mined based on each individual's privacy settings

Social Media vs. Sales Media

We know that corporations should stay professional on their Facebook, Twitter, and other accounts.  But does this cross the line?  Foremski compared corporations on Facebook to tupperware parties in your living room.  Facebook is a personal account; you access it to share information with your friends.  "Liking" a company's Facebook page puts ads on your newsfeed - equating it to being marketed to in your home.

This form of marketing could be considered voluntary, however.  By "liking" something the user invites the ads (or can "hide" them from the newsfeed). 

Facebook marketing is a two-way street - both parties have to give and receive information.  It's important for the user to understand that corporations are using their information.  It's important for corporations to clearly disclose what they're doing with the users' information.  As long as both parties understand the implications and use it responsibly, it is a viable way for them to get the information that they need.


Resources:

Foremski, Tom. "Corporate social media is not social - it's sales media." ZDNet. N.p., 19 May 2010. Web. 23 May 2010. http://www.zdnet.com/blog/foremski/corporate-social-media-is-not-social-its-sales-media/1327

Vasquez, Ishmael. "Facebook's Next Frontier: Measuring Social Media." Blue Fountain Media. N.p., 2 Feb. 2010. Web. 23 May 2010. http://www.bluefountainmedia.com/blog/category/marketing/advertising-marketing/ (image)