One of the digital markets we have to focus on as part of the course is Social Media Marketing. Social Media is a growing market, and most of the existing social media platforms like Twitter, Facebook and Google+ provide some way of marketing your brand. Twitter has the concept of promoted tweets which are given preference in search results. Facebook started the Pages concept where brands/companies can build their own pages and engage with their customers. Google+ also has a similar notion of pages for businesses. However as most of the companies realize there is more to social media than just creating and managing your own brand page. You need to be an active participant of the conversation about your brand and engage with your users/customers directly across multiple platforms. There are several companies already in this market which provide more services that make it easy to manage the social presence of a brand. Some of these companies have been around for a few years now. If we look at the graph below which is built on data from CrunchBase, right after the launch of Facebook in 2004 the number of new ventures in social media marketing were increasing until the last year.
In 2011, 21 new companies were launched compared to 27 in 2010. However most of these companies are small in size (<5 people ) and provide custom designed marketing campaigns for brands. The following graph shows the number of employees at these startups. About 60 of them employ less then 5 people. To conclude this post, I would say that the current state of Social Media Marketing is dominated by large number of small companies. Given the number of new companies starting over the last few years it has already been a high growth segment.