Social Media Marketing: How Many CEO’s Will Miss The Boat?
Posted April 28, 2011on:
SmallCap stocks have yet to utilize Social Media Tools; it may be too early in the cycle for a distracted CEO to understand how these platforms work, and many view growing Social Media sites like FaceBook and Twitter as a trend. LargeCap Companies are hiring full departments to man these platforms; in fact, it has been one of the few bright spots in a weak employment cycle. I guess the logical question is why? Why would a CEO pass on an inexpensive new marketing tool?
Clearly someone is wrong here and I believe the LargeCap CEO, in most cases, have better resources and make better decisions identifying tools that help his/her company sell products or services. Throughout history other important marketing tools were bypassed by smaller companies who were forced to catch up, and once a few “old line” CEO’s get fired because they refuse to adapt and are viewed as – missing the Social Media boat – you will see the this New Media Marketing tool part of day to day operations. Managers in general pay attention to the reasons their predecessors were fired. Most don’t realize the vast difference between a Fortune 500 company and how they operate versus a SamllCap company.
SmallCap Stocks are classified by their market capitalization of 1 Billion or less and most market watchers categorize stocks in 5 categories 1) MegaCap, 2) LargeCap, 3) MidCap, 4) SmallCap and 5) MicroCap. There are roughly 15,000 publicly traded companies in the US Markets and 70% of these are in category 4 or 5. This means that only 30% of companies have Market Caps above 1 Billion dollars.
If I were to advise an investor about what to look for in a smaller stock investment, it would be to examine the companies Social Media strategy in 2011 and how it’s working ……this will tell you much more about the management of the company than you know.