Implementing social media strategies in airport business models

Social Media your purchase.

With the advent of social media websites, many business administrators struggle to implement a workable and feasible approach of implementing social networking sites into their business models. Managers and consultants must work collaboratively to identify sound means of incorporating computerized technologies that support and foster profitable utilization of social networking sites such as Facebook, Twitter, and YouTube. Yet, despite the widespread and pervasive consumption of social media, many business owners simply fail to understand what social media involves, and, more importantly, how to successfully involve social media resources into their businesses.

This paper will first define and describe social media, explain how social media differs from similar concepts, such as User Generated Content and Web 2.0, explain the importance of social media inclusion in today's business models, and provide a viable approach to implementing the requisite and necessary tools to maximize customer satisfaction with social media outlets at a small airport.

Introduction:

For most of the 20th century, people acquired information, news, education and entertainment, through traditional means of media; newsprint, television, film, and radio. These traditional media outlets are, for the most part, highly dependent on the availability of specialized resources for creation and marketing; not everyone can afford to produce a television show, a radio talk show, or a newspaper without significantly vested resources. Toward the end of the 20th century, these types of industrialized media outlets were becoming usurped by internet-based communications while people began to explore internet-based options for media consumption activities as the pervasiveness of internet-based technologies increased exponentially. Relatively inexpensive and easily accessible modes of communication became mainstream as people of all ages, ethnicities, and socio-economic status realized the unique characteristics of social media resources; the ability to publish and access information instantly, and to communicate over great distances in an asynchronous environment.

A recent addition to the gamut of communication modalities is the so called "Computer-Mediated Communication" whereby "a wide range of technologies that facilitate both human communication and the interactive sharing of information through computer networks, including e-mail, discussion groups, newsgroups, chat, instant messages, and Web pages" (Barnes, 2003, p. 4). These computer generated communications are becoming increasingly more frequent in our technological society.

Hybels & Weaver (2007) note two distinctly important and unique attributes to Computer-Mediated Communication; it is both asynchronous and provides a type of social leveling that allows all individuals an equal position because social status cues are not apparent. Examples of Computer-Mediated Communication include communicating via text messages, through email, or social networking internet sites such as Facebook or MySpace.

Social media is both a recent addition to the influx of interactive online technologies and an instant mainstay in popular culture. Given the ubiquitous distribution of social media in the last decade, it is imperative that business operators understand and appreciate the importance of social media resources. Further, business investors and operators alike must recognize the advertising and promotional opportunities available from implementing and maintaining a social media-friendly business.

What is social media?

While there seems to be little consensus as to what, exactly, "social media" means, Kaplan & Haenlein (2010, pg. 61) define Social Media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content." According to Lawerence (2010) "94% of executives report that they are using Web 2.0 technologies to boost their internal communications specifically for: managing knowledge (83%), fostering collaboration across the company (78%), enhancing company culture (74%), and training (71%)." While only 87% of business executives utilize Web 2.0 applications and tools for interfacing, 73% say their goal is to improving customer service, 71% do it to acquire new customers in existing markets, 53% to generate customer participation in product development, 53% to let customers interact, and 23% for other customer interactions (Lawerence, 2010)

Social media, then, is primarily a means to maintain social interactions utilizing widely available and highly scalable internet publishing tools. Using web-based technologies to create a venue for interactive discourse and dialogues, social media sites provide end users the ability to create and generate media-based content and utilize the vast resources available in internet-based forums. As a type of "consumer-generated media," then, social media allows individuals to tailor-fit the type of information as well as the delivery of information sought. In this way, technology and social attributes contribute to a value-laden creation by the end user; the customer is the consumer and creator of their own consumption.

"The growing availability of high-speed Internet access further added to the popularity of the [Social Media], leading to the creation of social networking sites such as MySpace (in 2003) and Facebook (in 2004). This, in turn, coined the term "Social Media," and contributed to the prominence it has today" Kaplan & Haenlein (2010, pg. 60).

Social Media Marketing

Stelzner (2010, pg. 7) notes that "the number-one advantage of social media marketing (by a long shot) is generating exposure for the business, indicated by 85% of all marketers, followed by increasing traffic (63%) and building new business partnerships (56%).

Stefanone et al. (2010, pg. 511) writes that "the explosion in popularity of Social Networking Sites represents one of the fastest uptakes of a communication technology since the web was developed in the early 1990s."

Stefanone et al. (2010, pg. 511) writes that academic research on Social Networking Sites "is growing, with focus on a range of issues including privacy….identity and reputation…. And the role these sites play in relationship maintenance and the accumulation of resources like social capital."

Stefanone et al. (2010, pg. 511) writes that Social Networking sites "typically allow an individual to connect his/her personal profile to the profiles of other users, resulting in a public display of one's entire (online) social network."

Laidler (2010) observes that "blogs have greater potential for organic leads because their content-rich nature makes them more search engine friendly." This is an important consideration as search engines, such as Google.com, give a higher page rank to content-rich content than other, less content-rich webpages. This, of course, suggests that business managers should strongly consider utilizing one of the several blogging tools available to increase business visibility and recognition. Laidler (2010) correctly suggests that "social media efforts should lead back to your blog or website, which should be dynamic and informative, providing content and information that encourages visitors not only to return, but to distribute your content to their network."

Stelzner (2010, pg. 2) writes that "Social media…represents a marketing opportunity that transcends the traditional middleman and connects companies directly with customers." This marketing opportunity, of course, has the potential to drastically increase business reputation and, therefore, should be a necessary consideration for all neophyte entrepreneurs. Without the ability to connect to people, to customers, in meaningful ways and across several modalities, business operators will lose "wallet share" to those business personnel who recognize the clear benefits of online social networking. Stelzner (2010, pg. 16) notes that "even with a minimal time investment, the vast majority of marketers (78% or higher) indicated their social media efforts increased exposure for their business." Perhaps even of more import is the relative time necessary to realize significant progress. "Nearly all marketers who've been employing social media marketing for years report it generates exposure for their business and a significant 62.4% strongly agree." Stelzner (2010, pg. 16).

"53.1% of people who've only invested a few months with social media marketing report new partnerships were gained." Stelzner (2010, pg. 16).

"A key challenge to such efforts is the fact that the quantity and quality of non-verbal (or nontextual) social cues available to computer-mediated communication

(CMC) participants changed continuously since scholars first began examining them" explains Stefanone et al. (2010, 506).

"Rather than allowing users to experiment and play with their identity, many of today's CMC technologies tie users ever closer to their offline, physical selves. As new communication platforms diffuse throughout a population, navigating a social environment comprised of mediated identities becomes an increasingly important communication skill." (Stefanone et al., 2010, pg. 508).

Social networking sites, including BlinkList, YouTube, Delicious, Flickr, Tumblr, BlogMarks.net, Twitter, Facebook, and LinkedIn….provide an opportunity to strategically network and close deals based on shared interests and personal engagement." (Laidler, 2010)

However, Laidler (2010) notes that social networking sites do much more than just allow people to share similar interests; they allow users to advertise and promote products and services, to create and saturate brand recognition, as well as to build business relationships and create and foster a sense of community by soliciting for feedback. As such, users "also have unprecedented access to consumers, hiring managers, prospective clients, industry experts, and opportunities." (Laidler, 2010).

Stelzner (2010, pg. 7) notes that "the number-one advantage of social media marketing (by a long shot) is generating exposure for the business, indicated by 85% of all marketers, followed by increasing traffic (63%) and building new business partnerships (56%).

Stelzner (2010, pg. 5) writes that "Twitter, Facebook, LinkedIn and blogs [are] the top four social media tools used by marketers, in order."

"The popularity of social media is undeniable -- three of the world's most popular brands online are social-media related (Facebook, YouTube and Wikipedia) and the world now spends over 110 billion minutes on social networks and blog sites. This equates to 22% of all time online or one in every four and half minutes" (Prescott, 2010).

Prescott (2010) found that nearly a quarter of billion people age 13 and older in the United States used some form of mobile device in December of 2009 alone.

Facebook vs. MySpace

According to Prescott (2010) fully one-quarter (25%) of all Internet page views in the United States occurred at one of the top social networking sites in December 2009, up 83% from 13.8% in December 2008. Further, nearly one-tenth of all visits went to one of these sites in December 2009, versus 5.8% in December 2008. In December 2009, visits to Facebook accounted for 68% of visits to a custom category of 10 social networks, compared to MySpace's 28%. In December 2008, Facebook had 29% of visits and MySpace had 64%. Facebook market share growth rose 286% from December 2008 to December, 2009 (Prescott, 2010).

Facebook statistics

The numbers associated with Facebook are staggering. According to the most recent press release from Facebook (2010), there are more than half of a billion active Facebook users and half of this cohort, 250 million people, log into Facebook every day. The average user has 130 friends on Facebook. Perhaps even more telling is that, combined, people spend over 700 billion minutes every month on Facebook. Further, there are nearly a billion objects that people can access on Facebook every day, with an average user-created content of 90 pieces every month. Although the average Facebook user is connected to about 80 community pages, groups, and events (Facebook, 2010), "more than 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) [are] shared each month" (Facebook, 2010).

A special consideration is the mobility of many users; there are more than 200 million active users that access Facebook on a mobile device, such as a cell phone, or even a handheld gaming system like the PSP. Those who utilize a mobile device to access Facebook, are twice as active during their Facebook sessions, as well (Facebook, 2010).

Twitter

Prescott (2010) notes that, during any given day, Twitter receives 40 million "tweets" every day and processed more than one billion tweets in December 2009. Even more telling, perhaps, is that more than 25% of all internet page views in the United States was at one of the top social networking sites in December 2009, up from 13.8% a year before (Prescott, 2010). While Twitter is not quite as popular with the Gen Y cohort as other social networking sites, nearly one-quarter of Gen Y indicate using Twitter regularly. However, of the Gen Y usage on Twitter, 85% use Twitter to follow friends, 54% use Twitter to follow celebrities, 29% to follow family, and 29% use Twitter to follow companies (Prescott, 2010).

According to a report from the Social Media Statistics Compendium, the Gen Y cohort is particularly vested in online social networks; fully 99% of respondents to an online usage survey indicated having created an online profile on one or more social networking site, while nearly 9 out of 10 (89%) of Gen Y'ers have downloaded a content specific application to their profile page, whether it be photos, games, entertainment links, news links, or weather links (Social Media Statistics Compendium, 2009).

Of particular interest to business managers, however, is the rapidly increasing portion of Gen Y'ers who utilizing mobile social networking resources to maintain online social connections. For example, of respondents, nearly 40% indicated having either an iPhone or an iPod Touch. Of those with such devices, 53% of respondents have downloaded games, 35% have installed some form of entertainment utility, and 31% have installed some form of "lifestyle application on their mobile devices. Clearly, then, it is incumbent on business operators to fully consider supporting and maintaining appropriate networks for mobile social networks.

According to Webster (2010), "Twitter is more of a broadcast channel than many realize. The majority of users never post anything & #8230; but they are definitely reading and clicking." Webster (2010) formulates several important facts about Twitter that are of vital importance for business operators. Firstly, Webster (2010) writes that "awareness of Twitter has exploded over the past twelve months. The percentage of Americans who are familiar with Twitter has surged from 5% in 2008 to 87% in 2010. Twitter is a natural "companion medium" to other media channels -- in particular, as an accompaniment to live TV."

Hence, it is important for business owners to recognize that Twitter is no longer the hobby of children and young adults. However, Twitter still doesn't match the effect of Facebook; "7% of Americans (17 million persons) actively use Twitter, while 41% maintain a profile page on Facebook" (Webster, 2010). Further, over 60% of active Twitter users access social networking sites using a mobile phone.

While some "tweeters" are sporadically using the Social Networking site, Webster (2010) observes that others are significantly more dedicated to the "tweets" and are considered habitual tweeters. "The majority of Twitter users are 'lurkers,' passively following and reading the updates of others without contributing updates of their own but they are listening, reading and clicking."

Equally important to consider, is that Twitter's are not only much more likely to exchange information about products and services, but that they are also more likely to follow brands and companies than are the general population of social network users with 51% of active Twitter's actively following brands, products and companies on Twitter (Webster, 2010). The follow up rate for these Twitter's are significant as well; nearly three-quarters of all regular Twitter's posts are updates from previous Tweets concerning their experiences with businesses, and their favorite brands, products and services from those businesses.

Rainie (2009) found that "64% of online teens have created their own profile on a social network site like Facebook or MySpace, compared with just 35% of online adults."

Rainie (2009) found that 54% of college students read blogs, compared with 36% of online adults.

So for a small airport what could it mean?

Nigam (2010) identifies several methods airlines can incorporate social media into the overall flying experience.

Nigam (2010) writes that "Location-based services, such as Foursquare, Gowalla and MyTown are the latest craze in social media. Users "check-in" at stores, buildings, offices when they arrive. Why not offer a bonus for checking in at your airline with one of these services? Maybe advanced seating, a free drink free headphones or wireless access."

Nigam (2010) identifies several salient and important considerations for airports to provide to customers in an effort to enrich the overall air travel expeience. Among the more interesting approaches to incorporating social media in airport and aviation business is to "use a unique Hashtag for the flight" says Nigam (2010).

That way, when people send a tweet saying they just booked a flight, or are heading to the airport, they use that hashtag, and then can search for others using the same hashtag. Passengers can make their own arrangements to meet up at the gate, share a cab to the airport, or chat during the flight. They will feel much more connected to fellow travelers, if they would like to be.

Nigam (2010) suggest that seating charts be assigned Twitter ID's; passengers can "choose to sit near (or avoid!) someone based on their profile or tweets. For those who like to network, this will increase their opportunity to do so. And, most assuredly, they will tweet about the experience, giving you more word of mouth." This, of course, provides cheap and maintainable exposure to the business and increases market recognition.

Nigam (2010) suggest even setting up free wi-fi both in the airport and on board the plane, if possible so that those who use the "Tweetchat" function on Twitter can chat about the business, the airport and their thoughts. This way, passengers will be chatting about their experiences with the food, the airport, the overall flight experience. Again, this is cheap and easy way to bring customers together to share their experiences with a broad audience.

Conclusion

While social media may be an early adoption in the B2C model, the scale of activity at the non-commercial level indicates that businesses must consider and implement some social media inclusion simply because of the potential financial benefits. As Frischling and Schonland (2009) suggest, "low cost airlines tend to be the innovators in this area, but -- perhaps in a sign of the changed times -- many full service airlines have strongly bought into the Social Media sites too."

In short, the social media "fad" is not a fad at all, as research and statistics indicate. Rather, the presence of social media resources can only benefit businesses striving to gain a competitive edge and differentiate businesses from other, less "tech oriented" models. It is essential that businesses owners and entrepreneurs in all businesses, including the aviation and airport services businesses to include at least some of the many different and varied resources available to support an airport-based social media mecca.

References:

Barnes, S.B. (2003). Computer-mediated communication: Human-to-human communication across the Internet. Boston: Pearson Education.

Facebook Press Release. Retrieved Nov 21, 2010 from: http://www.facebook.com/press/info.php?statistics

Frischling, S., Schonland, A. (2009). The Airline Industry & Social Media: A must-have strategic guide for airline marketing and sales. Retrieved on November 20, 2010 from: http://www.iag-inc.com/store1/sample/extract.pdf

Hybels, S. & and Weaver, R.L., (2007). Communicating Effectively (8th ed.). New York: McGraw-Hill.

Kaplan, A.M., & Haenlein, M. (2009a). Consumer use and business potential of virtual worlds: The case of Second Life. The International Journal on Media Management 11(3).

Kaplan, A.M., & Haenlein, M. (2009b). Consumers, companies, and virtual social worlds: A qualitative analysis of Second Life. Advances in Consumer Research, 36(1), 873-874.

Kaplan, A.M., & Haenlein, M. (2009c). The fairyland of Second Life: About virtual social worlds and how to use them. Business Horizons, 52(6), 563-572.

Kaplan, A.M, Haenlin, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, 53(1), 59-68.

Laidler, D.A.C. (2010). What's Your Social Media Strategy? Online article found November 21, 2010. Retrieved from: http://www.blackenterprise.com/magazine/2010/10/15/whats-your-social-media-strategy/

Lawerence (2010). Social Media Statistics. Retrieved November 20, 2010, from: http://socialmediastatistics.wikidot.com/corporate-uptake