Jetstar to switch 40% of marketing budget into social media – mUmBRELLA

Budget airline Jetstar has announced a “significant shift in marketing spend”, with 40% of its budget to go into social media.David May, Jetstar’s head of marketing and PR, said the move – which will be implemented during the next financial year – followed trials during 2009. The move marks bad news for print, with Jetstar a big newspaper advertiser. Jetstar is the first major brand to make such a dramatic shift of marketing spend into social media.The announcement coincides with Twitter’s fourth anniversary.In a release citing “traditional media becoming more expensive and fragmented”, the company said:

“The significant shift in marketing spend shows Jetstar’s increased focus on social media and acknowledges the significance of social and digital media as a marketing tool.”May said: “We’ve conducted some very successful marketing and PR campaigns via social media in the past 18 months, including YouTube and Twitter, and the response has been phenomenal. “The increase in costs of traditional media compared with the audience reach is significantly higher than with social media, where you can potentially reach hundreds of thousands of consumers with the one simple online message – and digital TV isn’t filling the gap.”He added: “It’s clear our customers are comfortable in the online space and as Jetstar is essentially an online retailer, it makes sense for us to embrace social media outlets. Online media channels gives us immediate access to our consumers. Social media offers more value for money and is a smarter way to reach our customers.”

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Web Ink Now: Social business beyond just the marketing department

Many will be aware of my keen following of David Meerman Scott – below is an excerpt from his blog relating to business social media – something that many people keep asking me… the distance between the US and Asia Pacific is only based on hours in flying time – yet even whilst many companies are checking out social media in Asia Pacific the steps are small.

Social business beyond just the marketing department – by DM Scott

It seems there are three phases of development as an organization matures its social business:

1 Fear and distrust of social networking and a culture of saying “no” to tools like Facebook, YouTube, and Twitter. I’d say this is where 25% of companies are right now.

2 Putting a few people in the marketing department “in charge of that social stuff.”This is where more than half of companies are today.

3 Developing a social culture throughout the organization, including social business in each department. Less than 25% of companies have matured to this stage. IBM is there. The U.S. Department of Defense is too. Many others have written on this theme.

Just this weekend, I found these posts: Jeff Bullas asks: Who Is Winning At Social Media Marketing: Ford or General Motors? Jeff talks about how Christopher Barger at GM and Scott Monty at Ford are leading the way in social media. I’ve travelled to Detroit to meet with both and have video interviews with Christopher and Scott. I can say with certainty that both of GM and Ford are pushing social business down into the organization.Also writing on this theme is Peter Kane who asks: Why You Don’t Need Your Communications Team? Peter asks who’s important on the communication front? Customer service representatives? Sales departments? The $10 per hour worker on my floors? Peter answers his own question by stating the obvious: All are. All are new marketers.

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