More focus on owned communication and sales channels

Your website is yours.

As I look back on the projects I worked on for SMEs in Spanish America the last couple of months, there are a few subjects that all projects have in common across countries and which I will further dive into at a later stage. One subject I want to start with is the fact that companies heavily rely on social media and messaging apps for client and sales communication and why they should change this.

I have explained the importance of creating (or improving) a website, being a channel that a company owns, fully deciding its design and content. The caveat is to be aware to store your website with a national cloud providor, due to the North American Cloud Act.

What is the Cloud Act?

It is a US federal law of 2018 (Clarifying Lawful Overseas Use of Data Act) that forces US technology companies to deliver data from their customers, regardless of where they are stored (including in data centres in Spanish America or Europe) if requested by US court order. The law also applies to European (and Latin American) organisations that use North American cloud services (such as Microsoft, Google, Amazon), allowing data in Europe (and Latin America) to be accessible to US authorities. 

What The Netherlands and Europe are doing, among other things, is creating awareness for this risk: Research has been done on the degree of dependence, and there is more awareness among governments and companies.

Why it matters if SMEs rely heavily on social media and messaging apps.

It matters because heavy reliance on social media (like Meta, TikTok etc) and messaging apps (WhatsApp) gives SMEs massive reach, direct customer connection, brand building, and cost-effective marketing, but also creates risks like algorithmic changes, data privacy issues, dependency on third-party platforms, and the need for constant content, impacting visibility, sales, reputation, and long-term stability, if strategies aren't balanced.

The upside for using these North American platforms is clear and in this blog I wanted to focus on the downside risks and challenges, which are listed below:

• Platform dependency: SMEs become vulnerable to algorithm changes (like Meta's) that can slash organic reach, forcing ad spend.

• Reputation risk: Negative feedback or poorly handled issues can escalate quickly and publicly, damaging brand image.

• Data privacy concerns: Handling customer data on these platforms carries legal and trust risks.

• Content demands: Maintaining presence requires a constant stream of content, which can strain resources.

• Lack of ownership: The business doesn't "own" its profile nor its audience on social media; the platform does, limiting long-term control.

Therefore, SMEs may continue to use these platforms, however should not build their entire strategy on them. It's important to understand these risks and take (back) control.

The solution is a balanced strategy.

Although in Spanish America there is a high penetration of the use of social media platforms and messaging apps amongst the wider public, this is not a justification not to own a website and use email. 

Spreading your communication risks is a long-term sustainable strategy. You can do this by balancing earned media efforts with paid ads and events, and diversify your communication and sales channels to include your website and email. It's more about integrating and optimising all opportunities and channels for each target audience. If you only serve consumers your choices might be different than if you serve both corporations and consumers. 

In a balanced strategy, your website always plays an important role.