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The rewards and risks of social media engagement

Social media offers potentially lucrative opportunities for PR agencies. Many firms have developed proprietary tools and methodologies to quantify the effectiveness of their clients’ brands in social media by monitoring user activity on Facebook, Twitter, Pinterest, and other social networks. Agencies are also using proprietary methods to measure the quality of this interaction by analyzing the substance and tone of consumer posts and tweets, even attempting to correlate the nature and extent of social media engagement with their client’s sales. This engagement and analysis is valuable for clients, as it provides them a granular view of their messaging’s success.

Social media offers agencies numerous possible revenue streams, including license fees for the use of their proprietary technology and service fees for community management of various social media outlets. In order for firms to fully reap the benefits of social media, however, they must protect their rights in contractual negotiations with their clients. Agencies also need to familiarize themselves with the legal landscape in order to avoid regulatory pitfalls. Below, l address six key areas of concern. More…