There was an interesting article in this morning’s Internet Travel News about the power of social networking as a marketing tool. It caught my eye, not so much because of what it had to say to travel industry professionals in particular, but because it portended a marketing “tidal wave” for all industries. This was a timely confirmation that the subjects being covered in our November 1 Web 2.0 for Business conference are right on target. It also echoed Brian Lustig’s excellent August 14 post on consumers driving Web 2.0 applications.

This morning’s piece in the Travel News examines research conducted by Cindy Estis Green, managing partner of The Estis Group in Potomac, Maryland. Green just completed a comprehensive report on how social media and social networking represent the future of marketing for the travel industry. She spoke on the topic yesterday at an industry conference at the Washington Convention Center.

Her views extend to every business sector. Green stated, “There is a tsunami coming that few fully anticipate and it will dramatically change the marketing landscape in all industries, not just travel.”

Green continued, “It’s not just about a new set of media, it’s a sea change in consumer behavior. Social media opens the door for this new marketing model and as far as the consumers are concerned, the train has already left the station.”

Here’s an interview with Green, in which she explains how companies are moving toward this online, community-based form of networking:

Social media and networking tools are Web 2.0 applications that allow companies to engage with their customers. As I mentioned, my fellow bloggers have already done a superb job pointing out what some of these tools are and how they’re being applied. However, you might be surprised at just how many options exist:

• Blogs
• Profiles on social networking sites like MySpace, TripAdvisor, A-Space, other industry-specific sites, etc.
• Wikis
• Bookmarks, including Digg, del.icio.us, etc.
• Search-engine optimized press releases and articles
• Widgets
• Podcasts, videos, and photos
• Tweets (like blogs, with instant messaging)
• Voting on content
• RSS feeds
• Mashups
• Brand education tools
• Contests, games, and special events

These cost-effective tools should make marketing departments salivate. They make a high impact on a low budget and are easily accessible to even small businesses. Green points out that their real power comes through when they’re combined as part of a comprehensive plan.

One of the many things this MBA researcher did for her report was to poll travel executives about the expected impact of social media. The results are revealing:

• 65% – Deepen brand relationship with customers
• 55% – More targeted communications to niche markets
• 46% – Better understanding by staff of customer needs
• 42% – More recognizable brand image
• 41% – Improved revenues 

The numbers remind us that marketing using social media can be targeted to meet specific company goals. At the same time, Green says that this new form of customer engagement isn’t about the same old “pushing and pulling” of the old days. Marketers and executives will be challenged to use social media in a way that furthers their agenda, but leaves room for flexible customer involvement.

Green’s full report is called “The Travel Marketer’s Guide to Social Media and Social Networking,” and can be purchased in late September or early October. To buy a copy, contact either the Hospitality Sales & Marketing Association International (HSMAI) or the Travel Industry Association (TIA).

A decade ago, if you wanted to launch a website you had to be a computer programmer or have the recourses to hire web designers. Now anyone with an internet connection can publish content using any number of free build-it-yourself web publishing services.

Silver Spring-based FreeWebs is a great example of a local company providing those customizable website design templates. With the advent of widgets – mini software applications that can be embedded on social networking and blogs – FreeWebs has begun to offer a whole menu of customizable tools beyond the web page design itself. With widgets, the possibilities for customizing personal websites is endless.

“When I hear about the next great web tool my heart beats with excitement rather than fear,” says FreeWebs CEO and Co-founder Haroon Mokhtarzada. This collaborative process allows Freewebs to incorporate a popular tool like Google Maps or Youtube directly onto the users’ personal website. Users can pick from a collection of widgets housed in Freewebs’ Widget Bank

This room to grow is attracting a fair amount of attention. In 2006, Freewebs received $11 million from Novak Biddle Venture Partners and Core Capital Partners in what the Washington Post called one of the year’s largest local venture-capital deals.

With over 17 million users, FreeWebs is a great example of an internet-based company in the Washington area successfully adopting these new web 2.0 tools. Though Mokhtarzada acknowledges the differences between web-based businesses in the Washington D.C. area and those with Silicon Valley zip codes.

“There is a disadvantage being on the east coast; there’s more culture of web innovation on the west. In Silicon valley, you can talk to 10 CEOs of web-based companies within a 10 mile radius – all of whom are willing to share their experiences.”

No matter the location, Freewebs is likely to expand as social networking sites and blogs grow in popularity with users of all ages. “We have several exciting things coming out in the next six months,” Mokhtarzada said.

It’s great to see local company at the forefront of web innovation. What other Washington area companies are thriving online?