CAFRE Equine Studies Degree graduate, Stephen Farrell, reports on the evolution of social media and its influence on equestrian business...
Social networking sites such as Bebo, Facebook and Twitter have revolutionised how society interacts capturing the world’s attention and attracting a global following. A concept originally developed to connect friends now has the potential to connect businesses, including those in the equine industry, with existing and potential customers. Inspired by the evolution of social media I travelled to The North West Equine Exhibition in Liverpool and The London International Horse Show at Olympia as part of my thesis investigative project to speak directly with the equine business community. Obtaining questionnaires from 40 diverse equine businesses I ascertained if, how and why social networking sites are impacting upon their marketing activities.
Most equine businesses questioned during the investigation at 53.66% (22) did not utilise or did not plan to utilise social networking sites as marketing platforms. Such findings were primarily due to a limited knowledge of the concept with 19% (5) and a lack of time to update profiles at 40% (11). Marketing experts suggest that social networking for business is labour intensive and that not all businesses need social media. In contrast Mark Zuckerberg, founder of Facebook reports that “In the last hundred years, the way to advertise was to get into the mass media and push out your content. In the next hundred years information won’t be just pushed out to people, it will be shared among the millions of connections people have. Advertising will change. You will need to get into these connections”. In a sector such as horseracing which needs to attract a younger demographic for long term sustainability it may be worthwhile to investigate social media as a potential marketing platform based on its lucrative appeal for youth in the web 2.0 generation. Interestingly 15% (4) of equine businesses questioned during this investigation expressed brand image concerns regarding marketing on social networking sites. Personnel from one business claimed “I don’t want my business associated with this type of networking, it’s tacky”. Another highly regarded equestrian manufacturer made similar claims however personal research found the business to have a substantial unofficial presence on both Facebook and Twitter with profiles managed by fans of the brand. False business profiles can potentially damage a company’s reputation if negative content is posted. An official profile at least gives the business an opportunity remove and respond to negative content.
Just 39.02% (16) of equine businesses questioned used social media as a marketing platform. Facebook and Twitter are currently the undeniable leaders in social media with an ever increasing membership. Their popularity was reflected in the findings of this investigation. Fifty five percent (6) of businesses at The North West Equine Exhibition utilised Facebook as a marketing platform while Twitter was equally popular at The London International Horse Show with 37% (10) of businesses utilising the fore mentioned platforms. Keen to capitalise on the popularity of social media, entrepreneurs have launched equine based social networking sites. Equine based social networking sites were not widely utilised as marketing platforms by equine businesses embracing social media during this investigation at 81% (17). Such findings were predominantly due to the sites recent establishment and modest membership numbers.
The key motivator in establishing a business based social networking profile was to achieve an increased customer base. Twelve businesses ranked the fore mentioned motivator first out of five possible responses during the investigation. Businesses questioned also ranked an increased customer base as the key benefit of their social networking activities with 14 businesses ranking an increased customer base first out of three possible responses. In contrast to findings marketing experts suggest new customers are particularly hard to find on social networking platforms while making money out of your existing customers is frequently easier and cheaper. Based on such information it may be argued that equine businesses are misguided in their social networking activities. Further findings demonstrated evidence of utilising social media based on its contemporary nature and competitor inspired profiles. It is important to note that although social media is a great way for equine businesses to communicate with existing and potential customers it is not required by all businesses as a marketing platform.
A comparison was noted during this investigation between equine charities and retailers. Eighty three percent (5) of equine charities questioned utilised social media while in contrast 80% (8) of equine retailers questioned were unreceptive to social networking. Marketing experts suggest social networking offers better and less expensive results across most major business functions while bringing humanity and intimacy to news and events. Based on the nature of equine charities, reducing costs and effectively communicating the organisations message, is key to their success. In contrast equine retailers traditionally push out their content to secure sales, such activity conflicts with social media where content is shared amongst users as opposed to being pushed out. Such findings may suggest why 50% (5) of all businesses questioned from the retail sector were receptive to enrolling an external consultant to discuss social media possibilities. In general during the investigation 61% (25) of all businesses questioned were unwilling to utilise an external consultant to discuss social media possibilities.
The results of this investigation suggest that social media currently has a relatively low impact on the marketing activities of equestrian businesses. Equine businesses which do embrace social media for marketing purposes utilise the correct platforms but are misguided in their social networking activities seeking out new customers as opposed to focusing on their existing ones. Equine charities recognise how social media can help communicate their message while retailers understand the challenge it presents and are keen to utilise external marketing consultants to manage their social media profiles.
Membership figures in the millions suggest equine businesses are missing a potentially attractive marketing opportunity by shunning social networking sites but if recent media reports are correct the social media phenomenon may be backfiring. One broadsheet reports that “Facebook has lost its magic” and users are concerned about the amount of private information the website is releasing to third parties. Rumours are circulating that Bebo, a once popular platform amongst teenagers is closing down and that 40% of tweets on Twitter, the worlds fasting growing social networking site, are “pointless babble”.
In December 2009 Facebook defied the music industry by securing the UK’s Christmas number one. In March 2010 the website achieved more hits than Google in the United States. In June 2010 more than 400 million people have frequently undated Facebook profiles. Is it streetwise for equine business to ignore such an extensive audience?
Social media may be down in the press but more importantly it’s not out with the people.
