Traditional agencies – no matter what the PR says, want to keep making TV commercials. They approach the web like they approach any other medium. They want to spend the clients money in as simple manner as possible. That’s why they talk about web 2 and social marketing but when it comes to doing they run a few banner ads on Facebook and My Space and tell the client the social marketing strategy is under control. If they are really lucky they get to seed the TVC on YouTube. Social marketing – job done!

The real issues of leveraging social marketing are way more complicated. The tools are also not for everyone as you point out, however many companies who could benefit don’t because they hire a traditional agency with an interactive department (aka banner and microsite builders). I agree that the average web 2.0 agency is a little naive. Tagging a blog onto the website and building a Facebook group is not a solution for most marketing problems.

But used correctly, Social Nets can and do revolutionize things and do bring loads of business. If they didn’t, we wouldn’t be having this conversation.

Either you want to make a quick buck, and jeopardize future sales and customer loyalty…or you want to actually meet known needs of people and form mutually beneficial conversations with them, causing satisfied customers to become voluntary evangelists of your products and firm.

One-way broadcast propaganda is dying fast. Customers consider peer recommendations and uncompensated opinions far more credible than corporate PR and advertising.

You don’t invade a socnet and try to push product.

You join a social networking site, and engage in dialogue with the members. You provide insights, tips, helpful information, education, inspiration, in an authoritative and entertaining manner. You contribute expertise, in a regular guy fashion, while delivering expertise and perhaps some historical anecdotes.

This is the new way to market products, by being the “go to guy” in your field.

It doesn’t have to cost much, nor does it require a lot of time. But you need experienced social media veterans to guide you and keep you on track with changing trends and netiquette.

Twittering links, occasionally, to your corporate blog or ecommerce site, for a good reason, in a contextual manner, not only drives traffic to the sites, but generates great SERP power.

I guess the founder of Facebook does not count as a player in the Web 2.0 sphere.

Anyone who has not read the books – The New Rules of Marketing & PR – How to use News Releases, Blogs, Podcasting, viral marketing & online Media to reach buyers directly by David Meerman Scott and the book The Tipping Point by Malcolm Gladwell cannot really comment about the Web 2.0’s potential.

Read these two in combination. The Tipping Point is not a PR book, yet full of lessons. They certainly complement each other.

The New Rules is a worthwhile read. I mentioned it in one of my newsletters and on my blog – within an hour I got an e-mail from the author – thanking me – that is quick and there are lots of leverage techniques to be learned from him.

I have consulted with businesses and news organizations on social media. They have succeeded in establishing more personal relationships with customers and prospects. They have seen sales increase, customer loyalty strengthened, and marketing research into needs and desires expanded.

If a company merely wants to bombard customers with slick ads and arrogant promotions, that push product without creating an altruistic relationship and conversation, they’re doing Business As Usual, which leads to Business As Over.

There are charlatans and overpriced services everywhere.

But to act like social media marketing is vaporware, irrelevant, or “not our way of doing things” is quite naive.