Is it just me, or is everyone talking about social media these days? At South by Southwest Interactive (SXSWi) a few years ago, everyone was talking about blogs. Very few people ever thought there would be value in blogs for companies (it even sounded dumb – how could a name like “blogs” ever take off?). I’ve learned to go with an open mind, as what’s hot there generally will filter “down from the geeks” in short order. Here’s what was hot this year:

Social Networking.

It’s not new. Facebook and MySpace have been around for several years, but I’ll tell you what is new. My late thirty-something friends are all asking me to take our “friendship” to the next level on Facebook.

Don’t get me started on the demise of actual human contact (people at SXSWi don’t talk to each other; they sit with their laptops or iPhones and chat in virtual rooms). But one thing I know – online social networking is growing, and it’s not just college kids anymore.

In the old paradigm, companies controlled the message and the experience. Now, feedback and interactivity with customers is the name of the game.

If you are a company wondering how to jump on the bandwagon, check back tomorrow for our Top Six Tips on Social Networking.

Do you remember several years ago when that AOL customer taped his conversation with an AOL rep who tried to bully him out of cancelling his account? It showed up all over the news, online and in print. What if you had seen an ad for AOL after seeing that news story? Is there anything they could have said to make you want to do business with them? Behold the power of word of mouth.

In today’s world, word of mouth is instantaneous. We don’t have to wait for the news. With the advent of tmz.com and other paparazzi sites, we can see what Britney Spears is doing at this instant, should we so desire.

A great but somewhat scary example of this happened at South by Southwest recently. The 23 year old billionaire founder of Facebook was interviewed for the keynote. You could feel the excitement in the room as we all waited to absorb what made him so successful.

The interview didn’t go well. But instead of audience members privately thinking their opinions, they instantly got online (thanks to Twitter, Meebo, etc.) and began a conversation berating the interviewer. The “horde’s” disdain was palpable. My point is that the keynote wasn’t even over when hundreds of opinions, photos, etc. were posted online.

Dell made virtual history a few years ago when it acknowledged its notebook batteries catching on fire on its corporate blog. Before this, Dell’s blog was antiseptic, filled with marketing speak. Dell's perception was changed to that of a trusted advisor when Dell publicly acknowledged the issue that everyone was talking about.

Companies can no longer control the message and they should learn to embrace it. Realize that broad conversations are happening about you, whether you choose to take part or not. Be involved in the conversation in an authentic, trustworthy way. If you don't provide it, don't be surprised when customers look elsewhere.

The growth of social networks in the past year is phenomenal. eMarketer reports that one of the major shifts in social networks is their growing appeal to affluent Internet users.

The college student is no longer the sole user of Facebook or Myspace. The percentage of affluent users who participate in social networks has more than doubled in the past year, from 27% in January 2007 to 60% in January 2008.  Developments like this will drive the future of social networks, which are predicted to become mroe selective and specialized in the future. As more specialized social networks flourish, advertisers and marketers will find even more argeted online markets for their campaigns.

Click here to read the full eMarketer article.

Continuing with yesterday's blog topic, below are the final points on the new basics of marketing.