“A professional service firm without a website is one that will be out of business in a year…two tops,” said an accounting firm managing partner recently when discussing marketing online.

Five years ago it might have been an option, but not anymore. Not having that online presence is arguably like not having a phone, it just limits your communication with the rest of the world.

Social media, though, is not the same. Yes, social media is popular. Pew Research estimates about 70% of adult Americans use some type of social media. Broken down by age, nearly 90% of millennials use social media, with Gen X at about 80%, younger baby boomers about 65%, and the biggest fall off comes at those over 65, with just 35% using social media.

Using social media is not required marketing for professional service firms, but they are, as a group, moving very rapidly in that direction. But with so many social media options, where should businesses and service firms go in the social media universe?

We counsel a lot of clients, and we have found no two are alike. What social media works for one firm, might be totally different for others. Even within the same practice area, or geography, it varies widely.

We have found that there are 5 primary social media platforms that professionals need to be aware of, monitoring, or active on, if they want to be seen as relevant with the marketplace.

We have determined these are the big five:

Now nearing the 2 billion user mark; very popular, all purpose social media; accepts text, images, and video; rapidly growing marketing tools such as advertising and boosted posts

Arguably the most respected professionally; excellent tool for pier to pier connections; used heavily in recruiting and job hunting; nearly half a billion users

Originally “image” oriented, now using video, too; used by more than 25% of Americans; currently a favorite of millennials; used by half of all major U.S. brands

More than 300 million active monthly users, but more than 700 million registered users; appeals to users when news or frequent updates are important

Yes, YouTube is social media; more than 1 billion users; reaches more 18-49 year olds than cable TV network; generating billions of view of hundreds of millions of hours of content…daily!

Social Media info graphic. Image courtesy Walter Lim

Our experience is that each company, firm, or brand, typically has one social media that is used the most by their clients and customers, but that it takes some research to determine which. Additionally, firms are well served by exploring what customers and clients are using social media for. Is it news, entertainment, images, videos, text, or interaction?

Typically we recommend that firms and brands create a presence on each, but focus on the one that proves most engaging with clients and customers. The reasons for being on the others, are that social media tastes change, and you don’t want someone social media “squatting”—opening an account in your name and treading on your reputation.

There are wildcards, too. For some industries and for some audiences, Pinterest has become a big player. For Digital Natives, the next generation after millennials, Snapchat is growing rapidly. Blogging is another often overlooked social media many firms are finding customer and client engagement with.

If being vibrant, relevant, and attractive to a variety of potential markets and demographics, think about social media platforms and which ones might work best for your firm. Start with those mentioned in this article, and you’ll be well on your way to social media success! •

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Facebook just went public. Initial valuation estimates were between $90-120 billion. In some people’s minds, this company was worth more than McDonald’s, Bank of America, Kraft Foods and/or CitiGroup before a single share of stock was sold. Really? Yet, look at the hit the stock took on its second day of trading. Where is its real value?

Facebook does have more than 900 million sets of eyeballs that make up its user base. There’s definitely value in that. But how much value? Currently, it’s generating a couple bucks of revenue per user annually. That’s not much, and it’s far below the industry norm. Google generates nearly 8 times that in per-user revenue. What does it mean when General Motors just pulled its plug on advertising on Facebook since it was not helping them sell cars? Certainly nothing good.

Other than users, what are the assets? McDonald’s has recipes, stores, franchise revenue streams, real estate, trademarks and subsidiaries generating tons of revenue. Bank of America has loans, fees, credit cards, mortgages and other revenue sources.

I’m reminded of AOL, which if you recall, was sold in 2000. It was valued somewhere north of $150 billion, only to become one of the largest value declines in history. It’s currently estimated to be valued at around $5 billion or less.

What is a company worth? Or a product? Or a piece or art? Well, the simple answer is, “What someone will pay for it.”

Here at Southern California Professional, it’s fun to follow the rare big business news such as the Facebook IPO, but we live and breathe the realities of everyday business. We’re more concerned with your business, your clients and your products and services.

Maybe you’re an M&A attorney or an accountant helping a client buy a business. Maybe you’re a business owner who someday wants to sell your business, but your biggest concern is making it more profitable now. You live in a more realistic world of day-to-day business.

You’ve come to the right place. We’ve put together another issue full of business, legal and financial insight to help you do better at what you do. The information in this issue will truly help you find and increase the value of your business. So sit back and enjoy another great issue of Southern California Professional Magazine! •

Jerri Hemsworth
Publisher

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Valuation

FACEBOOK AT $90+ BILLION

As of our release date for this issue, Facebook was in the final prep stages for its initial public offering (IPO), and puts valuation on the social media site a little north of $90 billion. Investment experts are predicting this will add about $17 billion to Mark Zuckerberg’s personal worth.

Going Mobile

Global Cellphone Subscriptions: 6 million

Mobile Web Users Worldwide: 1.2 billion

Percent of Global Website Hits from Mobile Devices: 8.49%

Global Mobile Advertising ­Revenue in 2010: $1.6 billion

Global Mobile Advertising Revenue in 2015 (est.): $20.6 billion

* Source: mobithinking.com

Ones To Watch

TUMBLR.COM

This microblog social network platform is a real up-and-comer. Launched in 2007, Tumblr is now averaging 13 billion views per month (yes, billion with a “B”). Why do people like it? Users say it’s like all the others rolled into one easy-to-use site, it’s app friendly, and best of all, it’s cool.

PINTEREST.COM

Pinterest takes the ease of photo posting from Instagram and combines it with the posting of comments like the Facebook “wall,” to create a surprisingly new and fun social experience. On paper, it doesn’t sound like much (what social media does?) but users seem to get addicted very quickly. You can “pin” images, websites, and just about any content to your “pinboards” in a virtual bulletin board environment. Companies are quickly jumping on the Pinterest bandwagon, and while not confirmed yet, some Internet reporting agencies are indicating Pinterest, which was a startup in 2009, may already be the third largest social network in the U.S.

Global Social Media

­­WORLD’S BIGGEST SOCIAL SITES (estimated users)

Facebook: 900 million

YouTube: 789 million

QZone (mainland China): 480 million

Twitter: 300 million

Habbo (global, launched in Finland): 200 million

Google+: 170 million •

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