First off, I want to point out how excited I am to be writing this blog. For those who haven’t noticed, I’m new here at Canyon and this is my first post. I am super-excited to be a part of this great and talented team, and I look forward to posting more in the future.
There has never been any real doubt that social media is big. However, recent valuations of some of the social media giants provide us some insight as to just how big they really are. While it does not come as a shock to most to see the values of social media bigs like Facebook, Twitter, LinkedIn, and Groupon to be substantial, the fact these companies have annual revenues that are a small fraction of what they are worth is intriguing.
Facebook received a recent valuation of $75 billion, making it more valuable than Disney. This is despite the fact that Facebook only has an annual revenue of $2 billion, while Disney on the other hand has pulled in over $38 billion in 2010.
To see these companies valued at so much more than their revenue is confusing for some. Marketers however, should be enthused by this. The valuation of these social media giants is reflecting their utility. Facebook may only gross $2 billion a year, but how many other mediums allow you to engage, interact, and network with over 700 million people?
The fact that these social networking mediums are growing not only by users but also by value, is testament to the fact that marketers are on to something when then invest in social media marketing. They have recognized that social networks have extreme value and potential in regards to connecting with consumers on multiple levels, and it appears that financial investors have jumped onboard as well.
These extremely high valuations and bubble margins exemplify the effectiveness of social media, and represent just how much potential they have (an apparent potential that is worth about 50 times the annual revenue).
So what are you waiting for? Social media is booming, you don’t want to be left out. While some of these companies like LinkedIn are publicly traded (and trading for a solid $100/share), I don’t mean join into a piece of shareholders pie, but rather, become active in the extremely successful, scalable, and ever-catchy social media world that nearly 10 percent of the world’s population is already involved in.
For some B2B marketers, social media can be a new and unfamiliar, so they have been avoiding it, or afraid to try it. However, there is so much material and guidance available, than anyone can dive into it and with a little research and effort, become effective at it.
The beauty of social media is that there is plenty of room around the fire for whoever wants to join in.
There is so much opportunity and room for growth. This is why investors recognize the immense power and potential that social media has, and why they are willing to place such a large price tag on it. Is your latest B2B campaign tapping into the power social media? Can 700 million people be wrong?



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