Wednesday, February 11, 2009

Social web favors Small Companies

Like Kevin points out in his excellent post 'small is winning' on his excellent blog, the way internet works right now it favors smaller companies. I agree to quite some extent, although brand can favor bigger companies quite some and this might be more important depending on product, brand and position in the sales funnel.

'Social web' does not help the big companies either, it favors small companies:
  1. Social web is expensive as it has very little reach per expense. External cost usually is not too bad, but internal effort is huge (think about your blogging time).
  2. There is no barrier hindering companies from entering this communication, means the investment to use social can be made by small companies too.
  3. The most likely affect is on brand receiption - but big companies have an established brand already. Small companies can brand themselves easily and inexpensive this way.

So SEO, social, Co-ops work in favor for smaller companies. Ads, brand, SEM work for bigger companies, as their performance is much stronger related to the budget accessible.

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