Recently it was announced that UK food and retail giant Tesco has bought US social agency BzzAgent for a reported $60 million.
BzzAgent is a word of mouth media and marketing agency, who, with a network of around 800,000 volunteers, sample’s products and shares opinions on them via social networks. Established in 2001, BzzAgent have worked with clients such as Dunkin’ Donuts, Wrigleys and Philips Sonicare.
The real significance of the deal is that it shows that ‘social’ is now very much prominent in product marketing. Tesco clearly see the significance of how the social web can influence buyer behavior and this acquisition puts them head and shoulders ahead of their competitors.
Companies can no longer afford to ignore social media marketing as it is continually proving to not just be ‘a fad’, it is only getting stronger and is taking up more and more of a percentage of marketing spends.