Posts Tagged social media

Twitter’s growth is leaving some fascinated and devoted to the platform while others are confused and, frankly, wasting too much time with it.  A recent article in Fast Company here discusses Katalyst Media and Ashton Kutcher’s venture into the emerging realm of social media/ advertising/ entertainment/ whatever else you want to call it.  He is dominating twitter with 3.9 million followers and maintains an equally impressive facebook fanbase.  As Sarah Ross states regarding Katalyst’s business:

We provide a content solution for marketers and syndicate it through social environments.

The article states, speaking with Kutcher regarding Katalyst:

What the Katalyst team is planning, he says, is simple: Make entertaining stuff, give it to people where they already are, let them have some fun with it, and mix in brand messaging. And because of the viral nature of the Web, each new consumer is cheaper to win than the last one.

The article continues:

Of course it’s risky, Schmidt adds, because the more commercialized personalities become, the less influence they have. Kutcher acknowledges this: “I am consciously risking my career on the edge of what’s too much information. Eventually, we’ll open up this platform to others, just like Facebook and developers. For this to work, it has to be open.”

I love that Kutcher is grasping the open nature of the web and social media.  This is crucial to understanding and capitalizing on it.  Katalyst has become successful in utilizing the platforms that so many struggle with including raising substantial money for charities and current work with Pepsi.

The obvious benefit illustrated by Katalyst regarding social media is not direct monetization but maintains an emphasis on monetization nonetheless.  In today’s no revenue digital world, this is often a lost focus.  In order for business to survive, it is absolutely necessary; it’s just common sense!  Katalyst is actually profitable with social media!

So what is the take?

What can each business learn from Katalyst’s experiences?  It is about building reputation, enhancing customer experience and loyalty, and creating highly effective channels of information distribution.  Don’t prostitute the channels, however, through product hocking and spam.  That does not enhance experience or reputation.  This is the beauty of proper social media management, if reputation, experience, and loyalty are considered, the channels of distribution will maintain effectiveness and integrity.  They will only grow and become more efficient as well.