Sky Business: The implications of social media for business and why Australia leads in social media usage

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Last week I was interviewed on Sky Business about recent data showing that Australia leads globally in use of social media, and the implications of such high levels of social media usage for business.

Here is the full interview, with major points noted below.

  • It is surprising to see Australia at the top of the global charts in social media usage, given that just a few years ago it was significantly behind in uptake – this has been a dramatic acceleration in usage.
  • It is a fascinating question why social media usage surged in Australia (see here for more detailed thoughts on the topic). Contributing factors include the sudden improvement in mobile data costs when the iPhone 3G was launched in July 2008, and the shift to more a conversational style of social media that suited the culture and dispersion of Australians.

  • There are many business applications and benefits of social media.
  • Given the amount of time people are spending on social media relative to traditional media, social media must now be part of the marketing mix, and large companies are recognizing that.
  • Employees can be allowed or encouraged to use social media to develop their work-related personal networks, with significant benefits for productivity and business outcomes.
  • If personal networks are not relevant to a person’s work, then it may be valid to not allow them to use social networks on company time. However for most professional their personal networks can be very relevant
  • There is also an issue of trust and staff engagement. Monitoring or blocking people in their use of social media is akin to timing people when they go to the toilet, and employees do not respond well to that.
  • The launch of the iPad and similar larger-screen mobile devices will be important in driving mobile social networks. The very rapid rise of mobile social network
  • Many small and mid-sized businesses are leaping on the possibilities and potential of social media, as they see the value and have no impediments to taking them on board
  • Larger organizations have been grappling with the governance issues, however are beginning to find substantial benefits from using social media as they explore possibilities and set basic structures in place.