Microsoft announced recently that they are launching their own social media listening software tool (currently in closed beta), called Looking Glass, which will according to Microsoft “make social media actionable for business.” Pricing for LookingGlass has not been established.
Impacts of Big Boys on Social Media Monitoring
Microsoft’s entrance into the social media monitoring software category will have two mid-term consequences. First, the percentage of companies using some sort of social media listening software – LookingGlass or otherwise – will skyrocket. This pattern is as familiar to long-time Web watchers as the Cowboys choking in the playoffs. Small start-up companies innovate and create categories, and then the big guys jump on board and expand the user base.
Pay-per-click search engine advertising was pioneered by GoTo, and took off once Yahoo! bought it. The concept was later perfected by Google, which has built a company the size of a modest European nation based on it. Web site tracking was first popularized by WebTrends and a six pack of other, smaller companies. But widespread adoption of Web analytics occurred only after Google bought Urchin and created Google Analytics.
Similarly, Google made Web testing and optimization de rigeur when it rolled out Google Optimizer, broadening the market for multi-variate testing first developed by Optimost and Offermatica. Microsoft’s creation of Hotmail dramatically increased the total number of email boxes, making it routine for people to have more than a single account.
The big guys find a pond, and make it an ocean.
Social Media Monitoring Bargains Ahead
The second scenario that will unfold is that the cost of social media monitoring software will fall to zero. LookingGlass will eventually be free, and Google most assuredly will have their own system eventually – possibly including Google Analytics, Google Sidewiki, and Google Wave data. Neither of these companies have any illusions (or need) to make a ton of cash on social media monitoring software. Rather, they’ll use the collected data to improve ad serving, or to develop complementary products that can make money.
The concern is will this intrusion into the market spell doom for current providers like Radian6, Spiral16 and Scoutlabs or for Collective Intellect and their brethren at the high end.
No.
While the entrance of Microsoft will force the current providers to continue innovating, it should not collapse the market. Instead, it will put a greater premium on customer service and support, fortunately an area that most companies in this area (especially Radian6 and Spiral16 in my personal experience) already excel.
Pressure Makes the Strong Survive
Google Analytics didn’t put WebTrends or Omniture or Hitbox out of business. In fact, Omniture was just purchased by Adobe for $1.8 billion. Instead, it created a striation in the marketplace that actually helped the legacy providers focus their efforts.
The casual, small and medium size company will use the free social media listening tool. The larger companies that have more chatter and want custom features and solid support, will continue paying for that level of professionalism.
Further, the entrance of a major company – and presumably marketing dollars – will grow awareness of monitoring overall, resulting in net growth for the best of the current crop of players. I suspect that the best source of business for Omniture these days are companies that started with Google Analytics because it was free and easy, and then realized that they needed more detailed reporting and customization.
Competition will Continue
So, the social media monitoring software business will not be owned by one company, in my estimation. But, a shakeup is definitely on the way, and since you can’t swing a cat by the tail (don’t try this at home) without hitting a social media monitoring company, it’s a shakeup that’s healthy and perhaps overdue.
Who are you betting on to emerge as a leader in social media monitoring?
(photo by flattop341)
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That’s a solid analysis of the social media monitoring landscape. Microsoft’s intentions to get into the market are a sign that social media monitoring has arrived – something that could be good news for all the current players such as Sysomos who are working away on educating potential clients on the benefits of fee-based social media monitoring tools.
Mark Evans
Director of Communications
Sysomos Inc.
Thanks Mark. I agree that when the big guys get interested, it just helps the whole category. I’d love to learn more about Sysomos. Let me know. thx.
Thanks for that Jay, I didn’t hear about this. There is a ton of monitoring tools. I had a look at Radian 6 recently and wasn’t particularly impressed. I’ll be interested to see what Microsoft come up with. One big gaping hole in all them is the restrictions Facebook impose on getting access to their data. If this opens up that will make a big difference.
Ian,
Would love to get your feedback about your experience with Radian6. Not sure when you last used the tool, but we are now capturing the Facebook public forum discussions. Let me know how we can assist you in your listening and engagement needs.
Lauren Vargas
Community Manager at Radian6
@VargasL
.-= Lauren Vargas´s last blog ..What is the best way to handle negative comments? =-.
HI Lauren, thanks for the reply, it was several months ago. Great to see you’re able to get access to the public forum discussions. I’ll certainly take another look!
Ian
.-= Ian Cleary´s last blog ..Comment on TEDx – The Future Role of the Enterprise by Ian Cleary =-.
Hi,
Does anyone know how to actually access the data from the public Facebook groups? Where do you find it?
S.
Hi Lauren. Thanks for stopping by. Nice job walking the walk.
Hi Ian. Thanks so much for taking the time to comment. Indeed, as Lauren mentions below, some Facebook data is accessible now. And certainly, it appears as though Facebook prefers to put as much data out front as possible. All that’s stopping them is privacy issues.
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Great post, Jay. Customer service and support are essential to our business right now and always have been. Companies are coming around to seeing why these tools are valuable right now, but it’s customization to fit their exact needs that makes the “high-end” tools so useful. We must be able to tailor the tool for the company’s ultimate efficiency and time management.
Eric Melin
@Spiral16
.-= Eric Melin´s last blog ..Who matters more? Perez Hilton or T-Mobile customers? =-.
Hi Eric. Excellent point. One size fits all will not work for everyone in social media monitoring, the way Google Analytics doesn’t work for every company for analytics. I agree that we’ll start to see hyper-customized tools become the norm for mid and large companies.
Jay – Two points from this post I wanted to touch on in the comments. First –
“Instead, it will put a greater premium on customer service and support, fortunately an area that most companies in this area (especially Radian6 and Spiral16 in my personal experience) already excel.”
Could not agree more with your sentiment regarding customer service. In my work for D&E, I get exposed to all kinds of different vendors. We, as a firm, place a heavy emphasis on relationships and high levels of service. If the vendor cant provide that then we look for other alternatives. We’ve left certain vendors because the customer service was so bad — despite the value the particular products were offering to clients. Not only does Radian6 provide a quality product, but the people behind the product are what makes the user experience so great.
Second –
“Further, the entrance of a major company – and presumably marketing dollars – will grow awareness of monitoring overall, resulting in net growth for the best of the current crop of players.”
We can only hope…those of us that have been espousing the value/importance of monitoring and social media could use the boost
Consolidation within the monitoring industry is inevitable. It happened in the traditional space, and it will happen here. Those that win will be the ones that innovate and provide outstanding customer service.
Enjoyed this post, Jay. Thanks
.-= Chuck Hemann´s last blog ..AVE’s Are Dead. Or Are They? =-.
I concur Chuck. It’s pretty cool how much the monitoring companies “get it” and drink their own kool-aid re: listening (as evidenced by comments from those companies on this post).
And I indeed hope that we’ll see more focus on this industry soon. I foresee a time in just a couple years when we’ll begin having social listening conferences, the same way there are Web analytics summits today.
Jay,
I had to take some time to think about this before posting this. I think you are making a couple of good points (the industry will still remain, innovation will still come from the fringes) and knowing MSFT and how it works that is going to continue to be the case. They will ultimately, I think, throw Looking Glass in with Dynamics CRM (my opinion, not a fact) and that will slow down their progress.
Now, the part that I think you missed in commenting is that all the social media monitoring tools are simply collectors of data. The true value is not in collecting the data, but analyzing it and passing the actionable insights into the business to act on it. I think that some of the tools available today already know that and are acting on it, but I don’t think that MSFT has the knowledge/stamina/understanding to make that work.
I think that 2010 is going to be the year we realize how to do analytics will all the data collected, OK maybe into 2011 since it is complicated, and after that we will see a deeper embrace of the social tools and enterprise apps by organizations being able to track what is that they are doing.
That is just an entry level thought, but thanks for bringing the MSFT entry into the discussion.
Thanks
Esteban
.-= Esteban Kolsky´s last blog ..Why Pragmatic Enteprise 2.0 Should Also Become Pragmatic SCRM =-.
Esteban – I agree with you entirely. I’ve got a whole nother post brewing on that topic. Data and reports can take you only so far (not very). It has to be about context, and actionable recommendations. I believe many of the listening companies are trying to bridge that gap. Perhaps they’ll comment and tell us more about their plans in that area?
Many thanks for the great comment.
j
Great comment. I think most people getting started need the monitoring to “listen”. They will soon see there is value in measuring. But, the real benefit comes from engaging – taking action based on what is monitored and measured. This can be in the form of workflow to send cases or tickets to customer support, notifications to specific people to address an issue, or inputs into product management for product feedback. Engaging is key and you’re right, most of the social media monitoring tools out there, especially the new ones, are just about monitoring – its a good place to start, but there is much more value to be had. Look for tools that have maturity – not only will they have more features for monitoring (more feeds, more coverage), but also features to measure and engage.
Thanks, Sherrick
SRM Consulting
.-= Sherrick Murdoff´s last blog ..It’s Real – Social Media Examples and Case Studies =-.
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For sure! There is great opportunity for us to have more players in the space. We are learning from and challenging each other to find new and exciting ways to help organizations with their listening and engagement needs. There is still a lot of room to grow.
Lauren Vargas
Community Manager at Radian6
@VargasL
.-= Lauren Vargas´s last blog ..What is the best way to handle negative comments? =-.
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RT @chuckhemann: Is Social Media Monitoring Ready for Prime-Time? from @jaybaer [link to post] @kenburbary will like this
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Hi guys. Thanks very much for the spectacular comments. I’ll answer them all individually ASAP. In the middle of MarketingProfs Digital Mixer in Chicago right now. I’ll jump on tonight.
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RT @jaybaer Is Social Media Monitoring Ready for Prime-Time? [link to post] Great piece on social network monitoring
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I tend to think this kind of news will get companies to take social networking more seriously. After all, it’s hard to sell management on the cold hard facts of it’s benefits without being able to show them cold hard facts. When a company they know is huge gets into the business of monitoring conversations, even the social philistine knows it’s time to get in the game.
.-= Ciaoenrico´s last blog ..6 Mobile Marketing Trends to Watch For =-.
Interesting point Eric. I hadn’t thought so much of the “Microsoft brings credibility” angle, but I think you’re onto something, especially for the small-mid market that perhaps hasn’t fully grasped the critical nature of social CRM in today’s environment.
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RT @ciaoenrico: RT @jaybaer Is Social Media Monitoring Ready for Prime-Time? [link to post] Great piece on social network monitoring
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Interesting post by @jaybaer on “Is Social Media Monitoring Ready for Prime-Time?” (I’m bias but I think we are) – [link to post]
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Great post with interesting insights. I’m especially looking forward to your upcoming post on making social media data lead to actionable recommendations.
In the end, if the reports don’t lead to a “so what?”, then so what? All these tools require extensive human thought and input to eventually get to fresh actionable insights on a continual basis.
So, maybe Microsoft and Google’s interest in social media monitoring tools will develop a whole services industry around it?
I’m looking forward to your insights.
Thanks, John
.-= John Song´s last blog ..Lift9 Hires VP of Strategies (2009-10-05) =-.
The Radian6 folks and other monitoring folks in this thread can probably address this better than me (actually, I’m sure they can). But, while I indeed agree that actionable analysis is optimal in this industry, there is certainly value in timely, segmented delivery of social chatter for CRM and customer service purposes. That puts less onus on reporting and analysis, but simultaneously makes is less necessary to use a paid (vs. free) tool.
I’ve been saying awhile ago that new service providers will be needed. We’re seeing job desc’s seeking people with familiarity with multiple tools. And many agencies have a number of tools on hand to accommodate their client’s needs. That in itself indicates that variety is needed.
Techrigy’s SM2 is versatile is suited for a number of applications. Marketers and comm specialists need to choose what best suits their needs.
Omniture announced a product today too.
Connie
Community Strategist, Alterian
@cbensen
Great post Jay! Thanks for advancing this discussion.
As a paid service provider in the monitoring and listening category for some years now, the cost of “free” in this category hasn’t had much of an opportunity to ease in and wreck havoc mainly because the class of service element (a point which you allude to in your post). The saying “you get what you pay for” really rings true in the monitoring/listerning category.
However, going back to the point on cost – where I think there might be some area of concern is when a major company make its entrance, bolsters unprecedented awareness and interest, doesn’t get it right for whatever reason (i.e. rushed, badly mimicked, poor service) and falls short on promise or delivery.
In such a case, the cost isn’t zero, but rather quite significant, especially in terms of reputation repair for a category that potentially beaches (using your examples of Google and Microsoft) two of the worlds largest software companies.
Joseph
@RepuTrack
.-= Joseph Fiore´s last blog ..Tell me, show me, involve me =-.
Thanks Joseph for the smart comment. Much appreciated. I agree that if the big guys screw it up, it hurts the category. Fortunately, I believe the history of interactive shows that doesn’t happen much. Software, yes. Web, less so.
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thanks for @-ing me on that piece Ryan @rhilliard – Is SM Monitoring Ready for Prime-Time? http://retwt.me/1dp8j (via @jaybaer) | @RepuTrack
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Social Media ready for prime time? http://bit.ly/fiook
rt @jaybaer Will Microsoft kill the social media listening industry? http://ow.ly/vAL1 No, but it will increase corporate twitter visibility
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RT @JayBaer – What do you think? Is social media monitoring ready for prime time? http://ow.ly/vAKc
RT: @JasonFalls Awesome discussion of the implications of Microsoft's Looking Glass – http://ow.ly/vAKc (via @jaybaer)
RT @jaybaer Is Social Media Monitoring Ready for Prime-Time? | Social Media Marketing | Social Media Consulting – Co… http://bit.ly/18R026
Look for fast-paced developments in Social Media monitoring. This should bring more and better tools to SMB's http://bit.ly/3oakeF
New from #Microsoft- Social Media monitoring listening software tool- “make social media actionable for business.” http://ow.ly/vW8M
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RT @jaybaer Is Social Media Monitoring Ready for Prime-Time? [link to post] – MSFT beta, great to see more attention in the space!
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Social media monitoring is gearing up to be a big business – MS #lookingglass launching. [link to post] #social
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It is going to be interesting to follow Looking Glass. And I hope to see more low cost monitoring services in the future. This would be a big help to businesses in discovering the value social media can have for their business, before having to invest in the higher priced solutions.
.-= Cindy King´s last blog ..7 Ways to Overcome the Social Media Time Sink =-.
Is Social Media Monitoring Ready for Prime-Time? MS announces the launch their own social media listening tool http://bit.ly/1fsycm
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