Is Social Media Overrated for Brands?

A lot has been written about how social media is impacting brands. Eventually that would mean that what gets written on social media should start to impact the company’s financial performance. However I wonder if there is a critical size that once companies achieve, they will have less to worry about social media? For these brands, social media, or rather bad publicity in social media is perhaps overrated. Now it doesn’t mean that they should stop ignoring what’s written but it is unlikely to impact them significantly.

I came across these tweets by Vir Sanhvi. Now Vir Sanhviis a renowned journalist, writer and reviewer. He has 771K followers on Twitter. So he tweeting bad about a large telecom brand should mean something. Quite a few people joined him in lambasting the brand. 

Dear Vodafone :just gave up trying to get a post paid I phone connection from you because you have the worst helpline in India .Shameful!
— vir sanghvi (@virsanghvi) October 28, 2014

Yes Vodafone was kind enough to tweet and offer to help.This is my response .
— vir sanghvi (@virsanghvi) October 28, 2014

So what impact will Vir’s tweets and other related tweets really have on this brand’s performance? In my view, absolutely none!!!
Not just this, there have been numerous other brands that have been bashed in the social media. They call these social media disasters. And don’t forget the recent Flipkart 1 Billion Day disaster. However, it doesn’t look like these disasters had any significant impact on the companies’ performance.
I think social media is a great vehicle to get a brand started. It’s great for a new and small enterprises. I feel social media can make a brand, not necessarily break one, at least not a really big brand.
I think at the end of the day, we all know that everyone has a bad day. Shit happens, as they say. Social media has just become an avenue for us to bitch about something or the other, and perhaps it is overrated in its power to alter businesses. The brands should focus on their products/services. The social media will take care of itself.