Social media gold rush 'can cause problems'

Online retailers have been so desperate to take advantage of the social media craze that some have failed to consider all the pros and cons, an expert has suggested.

According to Tim Gibbon, director at Elemental, use of social media among companies has been like a "gold rush", with rival companies scrambling to attract new customers to their brands via sites like Facebook and Twitter.

However, Mr Gibbon says that there can be drawbacks for companies who do not use the technology properly.

A particular problem can be that through other advertising platforms, customers can be directed to the brand's social media page rather than its own site.

"This certainly demonstrates that businesses … are open to the opportunities that social media can offer, but with the fixation on social media environments they could be making errors that have plagued digital channels in the past," Mr Gibbon explained.

Gartner research suggests the social media customer relationship management market is set nearly double its revenue this year, when compared to 2010.

Posted by Paul Newton