In essence, the transformation from customer to community develops through understanding the common interests of your costumers, then creating content—news, informational tips, applications, video or audio files, etc.—tailored to those interests. Useful content makes both you and your company relevant and trustworthy.

Once you’ve created your content, don’t bother waiting around for your community to find it. Use media channels, blogs, community toolbars, and social networks to bring it directly to them where they congregate with like-minded people. Useful community-building sites:

• Create a branded social network on Ning.

• Simultaneously update all of your social networks on Ping.fm.

• Encourage your community to spread the word using ShareThis and Digg.

As with many internet sensations, the online quiz has opened yet another marketing avenue to reach this ever increasing audience. A successful online quiz balances advertising with entertainment, brings exposure to your brand, traffic to your site, builds your email list, and may even gather useful statistics at the same time. The New York Times recently ran an article highlighting the online quiz sensation RealAge.

According to the article, the RealAge quiz, which was made popular by a mention on the Oprah Winfrey Show, has been completed by more than 27 million people. The quiz collects data from nearly 150 questions on family history and lifestyle, then computes the user’s “real age” and gives participants an opportunity to become members of the site. Nine million people have opted-in, and now receive email newsletters targeted at their potential health risks, along with advertising for relevant pharmaceutical products.

Though critics are concerned with the sensitive nature of the medical information shared, and the lack of an official diagnosis, the RealAge quiz demonstrates the far reach of the internet. When used responsibly, online quizzes can benefit advertisers and consumers alike.

Social media campaigns are predicted to grow in the coming years despite recession budget cuts.

Even with the economic downturn, marketers plan to increase monies spent on social media advertising campaigns.  According to the recently released Forrester Reasearch US Interactive Marketing Forecast, social media is set to see a compound annual growth rate of 34 percent over the next seven years.  This tops the list of key online advertising channels predicted to experience growth over the same period.

The growth amounts to an estimated $2.35 billion spent on social network advertising campaigns worldwide in 2009 according to Emarketer.  Recent research conducted by the European Interactive Advertisers Association (EIAA) delivered similar findings.  According to the EIAA study, European advertisers are opting to invest in online campaigns over traditional media outlets.  All good news for social media sites, which provide a unique opportunity for users to spread the word about their favorite products and Web sites.

Despite the popularity of user-generated sites, advertisers remain hesitant. The fear of attaching their brands to unpredictable content leaves this market resource untapped. The sales potential makes the search for social media safe havens appealing to both marketers and site publishers. Once this up-and-coming media channel has been effectively balanced with editorial and vendor content, we may finally realize the full potential of this content-generation explosion.

Consumer reliance on online reviews is nothing new.  Opinion Research Corporation achieved similar results in a survey the company conducted last year.  Nearly two-thirds of respondents reported consulting online reviews, blogs and other sources of online customer feedback before purchasing a new product or service.  Eighty-three percent of consumers polled indicated that online product evaluations and reviews had at least some level of influence on their purchasing decisions.

The survey narrowed in on three critical stages in the purchase decision-making process at which respondents turned to online product or service reviews: when they begin their shopping research, when they are trying to decide between two or three products or services, and at the narrowing down stage to confirm that they are buying the right product or service. 

Still not convinced?  Check out Jennifer Laycock’s article at Search Engine Guide.