WHEN starting out in business here, it does not take too long to figure out that everyone knows somebody involved in, who is knowledgeable about or who can influence some aspect of every single deal you are involved in.
If you want to be successful here, you need to be aware of the various networks that underpin the Manx economy. Some are based on family connections, others on school affiliations, still others are based on people's employment histories, club memberships and such.
The Isle of Man grapevine is very effective and is a driving force in business. Some might call this 'small town mentality' quaint, old fashioned or unsophisticated. I call it cutting edge.
Commerce is a sociological phenomenon that is based on human relationships and social interaction and I believe so many businesses thrive in the Isle of Man because of the sense of community. The good news is the rest of the world is starting to catch up.
Many companies are starting to realise that communities matter again — thanks to Web 2.0 or social media. They are rediscovering that social networks are important to business and they are trying to understand adoption, user behaviour, trust and information flows in these communities. In the Isle of Man, we already understand this.
The next step for companies is to attempt to influence the behaviour of these networks. Many are already thinking hard about it and some are actually engaging with such communities via the interactive Internet.
Web 2.0's rise is creating what some call a new form of marketing known as social influence marketing.
But this is nothing new. It is how business has been conducted since caveman days. The difference is that we now have the technology to broaden our networks and facilitate communications.
The slick 'ad men' of the 1960s started a decades-long marketing trend, based on the media of the time, that lost sight of the importance of communities and social networks. Today's marketers are reintroducing the concept based on the media of our time. It is being hailed as the third dimension of marketing. New strategies are being introduced – albeit with a lot of experimentation. Through trial and error, organisations are learning how to utilise social media at every stage of a marketing campaign and beyond.
The key trend is that people no longer see the internet as something distinctly different. They expect organisations to make themselves available online and they expect their interaction to be effortless and the experience to blend seamlessly with their offline interactions. Peer reviews, social networks, blogs, virtual worlds, wikis and social advertising are all making this possible.
Within the social influence paradigm, consumers are now in the driver's seat. Companies must engage with them where they want and in a language and format of their choosing. Slick, 'big-idea' advertising is starting to have less influence than marketing strategies that allow companies to participate in online conversations.
eMarketer predicted that advertising spending on social networks will rise from $920 million in 2007 to $1.6 billion in 2008.
Online social networks are already beginning to matter more than websites. Facebook is now a dominant force and, with MySpace, Bebo, LinkedIn and Plaxo growing in popularity, any one of them could be the next big thing.
One thing is for certain, internet-enabled social networks are here to stay and companies need to think hard about how to integrate with social networks.
It is important to understand, that social influence marketing is not just another tactic.
It is not just about user-generated content or advertising on social networks. Smart companies will use social networks to innovate, recruit, evaluate and interact with all the groups of people they depend on for success — whether that is customers, employees, partners or shareholders.
But we, here in the Isle of Man, already know all this. We should be chuffed that the rest of the world is finally catching up. The best thing for our community is that we can now easily broaden our influence beyond our shores, thanks to Web 2.0 technology.
>>Sherrilynne is presenting continued professional development sessions on social media at the International Business School on March 10 and 17. Visit
www.ibs.ac.im for more information.
>>Sherrilynne Starkie is the managing partner of Strive Public Relations, a communications consultancy in the Isle of Man. She provides her views on business and technology each week in Tech Talk. Visit her business blog Strive Notes for frequent updates.www.strivepr.com