Changing landscape for social media firms
Friday, October 04, 2013 7:00 AM
Nathan Wright announced last week that he is closing his social media consulting company Lava Row Inc. to take a digital marketing and innovation job at Hy-Vee Inc.
Wright said he wanted a new challenge after six years of running Lava Row, even though he said the company was “stable and successful.” Still, his departure to a larger company is indicative of a trend in the social media consulting and marketing world.
Wright notes that when he started Lava Row, there was nothing else like it in the market. Since, he has noticed that many companies have figured out internally how to effectively use social media, and said many larger marketing and advertising firms have added social media marketing as a service.
“I think the social media companies may have run their course because people have been overwhelmed with education on the subject,” said Josh Fleming, brand counselor at The Meyocks Group and president of the American Marketing Association Iowa Chapter. “At some point, new mediums just become part of the everyday normal and accepted culture.”
Other social media-specific companies seem to have pushed toward a focus on digital marketing as a whole, not just social media. For example:
• Joe Soto closed his company called One Social Media this year and opened Revenue Inbound to focus on things such as website development and search engine optimization in addition to social media.
“Social media has kind of worn off its welcome if it can’t convert to real results,” Soto told the Business Record in June.
• Raylee Melton started Moth Media last year as a social media specialized firm that focuses broadly on online marketing.