There’s good evidence to suggest that social media could be fueling the global economy. With social media dominated mostly by US-based businesses and with the US market influencing the global economy significantly, there are a lot of ways that social media is connected fueling the economy. Let’s explore just a few of the most common impacts that we see social media having on the global business landscape.
Social media is making information more accessible
One thing that’s different about today and generations before us is that information is readily available. At any time, you can login to a social media website and there are businesses competing for your attention through consumable content. They create content marketing campaigns and they produce articles, videos, infographics, and other media in order to gain your attention and influence you as a consumer. Sometimes this is bad, but often times it means that we’re exposed to new concepts and ideas on a continuous basis. Businesses have a responsibility of addressing our pain points as consumers and helping us find solutions.
With this easily accessible information, there’s a democratization of influence and businesses are able to reach consumers directly through the digital landscape. They promote articlesand push content toward you in an indirect and consumer friendly way. Social media platforms like Facebook and LinkedIn provide direct access to information that was once never available. This user-generated content has created transparency and it has connected businesses with their audience.
Social media has directly created more jobs
Just as we have seen with the Internet as a whole, the social media sector has directly created more jobs. There are social media management jobs where businesses hire individuals to manage their social media profiles and engage with their audience online, there’s also content management strategists that create consumable content for businesses to share on their social media profiles, as well as software and tools that help businesses accomplish more through social media. These jobs are a direct result of social media’s influence and it has helped boost the economy and fuel growth.
Social media has created platform bound economies
Within the economy, there are specific economic sectors that exist within platforms. Social media is linked to the platform that it exists on, such as Facebook, YouTube, or LinkedIn. These platforms control the distribution of content and they affect how this content is able to spread across the Internet. This disrupts the way traditional advertising can be performed in a means businesses are bound to the platform’s rules and guidelines. As a result, these platforms have controlled the advertising space and have become some of the biggest companies in the world. However, creates opportunities for entrepreneurs and new businesses to establish themselves and advertise to customers in a unique way they can gain recognition on a small budget.
Social media has allowed brands to scale and reach new heights
As mentioned above, social media platforms dominate the advertising space and have become multibillion-dollar companies because of this. However, it allows businesses and brands to scale and reach new heights that without social media would be impossible. These platforms give businesses an opportunity to create content and engage with their audience in unique ways they can get recognized. They can piggyback off the worldwide growth of social media networks and use their member base as an opportunity to spread their wings.
Social media has been fueling the global economy for some time now. When LinkedIn was originally purchased by Microsoft for $26 billion, it became very apparent that social media sites were on the radar of even some of the most established and longest standing tech companies in the world. This fueling that social media does to the economy is expected to continue and hold influence for decades to come.