Social Media: The Double-Edged Sword NZ Businesses Can’t Afford to Ignore

In today's hyper-connected world, social media is a double-edged sword, offering businesses both enormous opportunity and serious risk exposure.  

When used strategically, social media can drive exponential growth, brand awareness, and engagement. But when it's poorly understood or under-resourced, it can quietly erode a company’s reputation, customer trust, and even its bottom line. 

The Opportunity: Real Business Results, Not Just Vanity Metrics 

We’ve seen firsthand the transformative effect social media can have for organisations that approach it with maturity and intent. One of our retail clients shifted 70% of their traditional ad budget into social, based purely on the ROI we were achieving. Another generates 90% of their leads through social media, thanks to a robust, insight-led strategy which is so effective that their competitors have since mimicked it. 

These aren’t isolated wins, and they’re not sector-specific. Time and again, we’ve seen that when social media is treated as a serious commercial channel (not just a fluffy add-on!) it becomes a real driver of growth and innovation. 

The Risk: Immature Thinking and Underinvestment 

The real risk isn’t trolls or bad PR (top of mind after ‘that’ Coldplay concert incident!)… It’s underestimating the power and visibility of these channels.  

In New Zealand, too many businesses (even large ones) still treat social media as a junior comms function. It’s not uncommon for channels with mass reach and following to be managed by the most inexperienced person in the building. 

This kind of underinvestment isn’t just a missed opportunity. It’s dangerous. It creates gaps in brand voice, customer engagement, and risk response. Businesses that aren’t actively managing their social presence are ceding control of their narrative – and often, their customers’ experience. 

Treat Social Like the Asset It Is 

A critical but often overlooked risk lies in access and ownership. We’ve seen situations where agencies control a company’s Meta account - clearly unacceptable.  

Exit processes often overlook access removal. And when restructures hit, few think about what a disgruntled staff member might say on behalf of the brand. 

Another major risk? Over-relying on platforms you don’t own. If Instagram or TikTok disappeared tomorrow, would you have a plan to continue engaging your audience? Smart businesses are actively converting social audiences into owned databases to future-proof their communities. 

The Agency Wild West 

If you’re thinking of hiring an agency, proceed with caution. This industry has low barriers to entry and requires no formal qualifications. And, from our experience, a big agency brand doesn’t necessarily guarantee quality either.  

So, make sure you ask for client references. Look at how long the supplier has been in business. And don’t lock into long contracts from day one! Ironically, as an agency owner, I often advise clients not to commit to more than three to six months initially. It’s the best way to test for cultural fit, capability, and consistency. If the agency is good, they’ll prove their value quickly. 

Social Risk Management Needs a Seat at the Table 

Risk management in social media isn’t just about having a policy. It’s about having a dynamic, living framework that reflects the reality of fast-moving platforms and evolving public sentiment. Your framework should: 

• Clearly define roles, responsibilities, and escalation pathways (including out-of-hours cover); 

• Involve both strategic leads and those on the tools; 

• Be reviewed every six months - especially if you’re in a sensitive category like health or politics; 

• Integrate with broader crisis communication plans. 

But please don’t over-egg it. One of our global clients required a six-month-long security clearance just for platform access. While compliance matters, it must be grounded in understanding. Security theatre helps no one - more often it hinders speed and agility. 

Crisis Comms: Don’t Let Social Be an Afterthought 

When a crisis hits, your social channels often become the frontline. Yet too many businesses still exclude their social teams from key meetings and messaging decisions. 

That’s a mistake. 

Social media managers often have the clearest picture of what’s happening in real time. They need direct access to the latest information so they can respond with accuracy and empathy. 

We once had a retail client sell out of a product almost overnight thanks to a successful campaign. Unfortunately, we weren’t told of the stock issue until after customers were already frustrated. A simple breakdown in internal communication caused unnecessary damage to customer relationships. 

Final Thoughts: Social Media Is Serious Business 

Social media can be a catalyst for growth, connection, and innovation. Or it can quietly become a liability. The difference lies in how seriously you take it. 

When managed with maturity, strategy, and the right partnerships, social media doesn’t just build brands - it transforms businesses. 

And one last piece of wisdom… Even if you're not active on a particular platform, don’t assume the conversation isn’t happening there. It is. You’re just not in the room. 

Ready to take social seriously?

As an agency, we understand the importance of managing risk while staying responsive and in control of your brand’s voice.

- Lisa East