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Social Media Marketing Startups Capitalizing on Facebook’s Growth

Social Media Marketing Startups Capitalizing on Facebook’s Growth

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Published by: Crowdsourcing.org on May 31, 2012
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05/13/2014

 
Social Media Marketing StartupsCapitalizing on
Facebook’s
Growth
Gideon HaydenMay 30, 2012
Facebook has become one of the most important channels for brands andenterprises to reach their customers in ways not previously possible,with 85 percent of 
advertising in 2011 alone. In the process of becoming one of the largestdisplay ad networks either online or off, the social networking giant hascreated a niche industry for startups to capture: out-of-the-box socialmedia marketing technology.
 
Many startups have poured into this space offering businesses of allsizes access to tools that allow them to customize their Facebook pages,run unique campaigns, and target specific customer groups with specialcontent, all without having to touch a single piece of code. As thewillingness to pay for solutions like these grows with the popularity of Facebook as a distribution channel, social media marketing companieslikeBuddy Media, Wildfire and Evly are growing in popularity and profitability.Eric Edelstein, a serial entrepreneur from Cape Town, South Africa,founded Evly with co-founder Eran Eyal with the goal of creating a
technology that allowed brands to “crowdsource social media projects
quickly
 – 
 
think Ning for crowdsourcing.” At the time, Evly was its ownnetwork that wasn’t integrated with any social media sites, however 
when their company pivoted into producing the same technology forFacebook, they began to see traction.
Edelstein’s vision is not simply to help brands extend their reach, butrather to engage a brand’s community in improving the health of the
company through crowdso
urcing. “Imagine a non
-profit like Greenpeacethat has tens of thousands of loyal supporters. Social Media allowed
those supporters to get more involved with Greenpeace,” Edelstein saidin an interview. “But when social media and crowdsourcing converge,
Greenpeace will have a huge community of people that can start addingbusiness value to them
 – 
from generating ideas, solving problems,helping them with market research, or designing their new logo, poster,
or movie.”
The company has seen traction with clients in South Africaand Europe, and is looking to expand its presence in North America.They offer a basic free account, a pro account for $250 per month, andcustom pricing for agencies.
 
Grosocial is another startup in the space, and it recently raised $1 millionin investment. It allows companies to customize and promote Facebook pages, swap status updates with other marketers, and it also providestraining tools. At $19.95 per month for their Facebook pages tool,
it’s a
more affordable option that suits the SMB market. The company alreadyhas thousands of customers in 17 countries.The other race in this industry will be to start providing enterprise toolsfor platforms other than Facebook. In an interview with Wildfire, aleading social media marketing company that has grown fromseven to300 employees since 2010 and boasts 13,000 customers,theyhighlighted their outlook on this trend.
“Social marketing is
not just about Facebook, and the social network landscape we see now will inevitably change. So when brands are
looking for a platform, it’s wise to use one that connects social networks
that are relevant now, and those that will surely emerge
 – 
the newP
interests and Instagrams of the social space,” said
Emily Eberhard
Pereira, Wildfire’s director of communications. Wildfire’s pricing is on
a per-promotion basis, with a base and per-day price, as well as customenterprise-level pricing.Big money has poured into the social media marketing spacerecently. Oracle snapped up Vitrue,a leader in the field, for $300 million last week and Buddy Media,another competitor in the space, has raised $90 million in VC funding since 2007 and isreportedly in talks to be acquired by Salesforce for $800 million. Expect this industry to continueto grow as Facebook and other social media platforms integrate
seamlessly into consumers’ everyday lives.
 

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