Social media usage has grown to the point of acceptance by users across all social demographics; Facebook is no longer just for college students and alumni, but also their parents and grandparents.

The average Facebook user is 33 years old (up from 26 years old in May 2008) and the average age of Twitter user is 31.

35% of adults have a profile on a social networking site (a rise of 437.5% since 2005). This number rises to 75% amongst those aged 18-24.

Communicate, Don't Broadcast

A Company’s main means of communicating with customers online has been email marketing; this ‘broadcast’ method of communication is at odds with people’s current social means of interacting with the web.

Whilst sending and receiving email is still a popular activity amongst Generation Y (18-25 year olds) their main means of communication is through social networks. Social networks are not only how they manage most of their social interaction online, but also how they are most receptive to peer recommendations. Email marketing is far from being on the decline, but as email becomes a more formal (even outdated) means of communication to Generation Y then companies will move their online marketing towards methods that utilize social media techniques.

Customers now expect input into products and to have an easy line of communication with a company or brand. They expect immediate responses to their communications with a knowledgeable source (rather than a call centre). People also put a lot of stock in the opinions of other customers (for example, the phenomenally successful review system on Amazon and niche review sites such as the hotel review site TripAdvisor.com).

Industry Outlook & Forecasts

The focus of marketing departments is shifting from broadcast to communication. Companies realise they will be left behind if they continue with broadcast means of communicating with their customers (sending out messages with no direct means for a customer to respond or engage with them) and instead are looking to establish long term, communicative relationships with customers.

This seismic shift in thinking has been brought about by the explosion in popularity of social networks; this has meant people now expect not just instant access to information but personal communication and means that, for those under 20, communicating through social media sites is the norm and email is seen as passé and stiffly formal.

By 2013, 17.9 million US teenagers (79%) will use social networks.