Social Media’s Impact
By Nick Natalizio
Whether it’s Instagram, Snapchat, Twitter or Facebook, social media has been putting an effect on the economy for years. Social relations are a big impact factor for the economy, but isn’t the only factor. The easy access to advertisement and how much the social media has been growing is also a major factor that has impacted the trade offs, the demands of goods, and the advertising of products.
Now of days we see thousands of Instagramers, YouTubers, and Tweeters showing off, or advertising products that are becoming popular today. Always reviewing then selling the products to let people know what’s good today. With these free advertisers, large and small businesses are benefitting from it. More and more business can compete and thrive from this way of advertising through social media. This also gives buyers less trade offs and better opportunity cost for the buys all around. The economy has been seeing an incline through this by now having way cheaper products that originally have been very expensive. As you can see it’s generally impacting everyone in America in a good way. With this higher demands for these trades, means that more money is moving and getting around and then having better chances of having that money.
Amazon has been an outstanding company that has taken great advantage and used clever advertising skills/methods. As you probably notice the random pop ups you see on Amazon that ask you if you would like to link up your Amazon account with your Twitter or Facebook. This lets the Amazon people see what kind of stuff you’re interested in and talk about. Even with how creepy this is, it really is convenient and basically allows Amazon to customize your browsing interests to show what we like and want most. Things like things make other competition want to improve and be the best. This ultimately makes companies thrive in this ever changing economy. We see a lot of people now of days that meet and talk other people around the world or across the country. This is affecting the economy overwhelmingly because it allows industries to come in and be more exposed. In America innovation and improvement keeps the economy going and growing, so social media allows these innovators and creators interact and create more. Mcdonald's, Dunkin Doughnuts, and other companies have been doing more and more with public relations and social media. These public relations are basically a way for avid followers to come together that usually include refreshments, entertainment, and advertise their company, bringing the community together to increase the company's sales.
When an increase occurs there usually always is a decrease or negative as well. With all these benefits, also comes with less trade in some other part. When less productivity and trades occur we see a decrease in the economy because less chances or money getting around to people. While this is a huge concern, social media hasn’t made this big of an impact yet but for sure is a possibility. It has been estimated that 650,000,000,000 dollars are being lost or wasted due to Americans sitting around on a social media sites and websites while suppose to be at work. This shows how that not all social media is good or beneficial for the economy. If a company decides to work it with social media it can be a slippery slope, but with trial and error companies are becoming more controlled and knowledgeable about the use of social media everyday. Overall, by allowing more advertising and making demands more apparent, we see the economy benefitting more than it drawing back.
Works Cited
"Applied Economics Letters." Impact of Social Media on Economic Growth – Evidence from Social Media: : Vol 23, No 9. N.p., n.d. Web. 01 Nov. 2016.
Besic, Lejla. "How Does Social Media Affect the Economy?" How Does Social Media Affect the Economy? N.p., 1970. Web. 01 Nov. 2016.
The Atlantic. Atlantic Media Company, n.d. Web. 01 Nov. 2016.
It is a Global known fact that social media is drastically impacting the economy today. This impact is increasing day by day. Through having social media, I see various advertisements and reviews of the products in a daily basis. These type of posts/pop ups became a modern trend to the companies and viewers. Lot of consumers look at the reviews(Amazon) or see you tube videos to choose the product that is cheap but efficient. This trend gave an advantage to all businesses, to sell their products in cheap price and in online; they gain more profit than in normal stores. It is fascinating and creepy on the search results of the consumers; if a person searches about Canon Cameras, he/she will definitely see the advertisements related to Canon cameras in their social media. In addition, social media market consists of a combination of two markets-Perfect and Monopolistic competition because there are hundreds of retailers that sell identical, differentiated goods and compete to be profitable. Overall, it is really interesting on how social media impacts an individual and hundreds of companies.
ReplyDeleteIt is interesting to analyze the impact technology has made an increase on applications. As more and more devices with application support are sold, the demand for applications increases, which increases the sales. There are a vast ammount of economic opportunities within the application sector of technology and the market is overall monopolistic or opolistic, as every application offers a different service or is similar to only a few apps. This allows for producers to choose a price (to a certain degree) that they choose, depending on if the offer it free up front or in app purchases. Overall, the economics of applications as a whole is vast and competative.
ReplyDeleteI never really thought of the opportunity cost of using social media before. Obviously everyday consumers choose to browse and stay up to date, but it must be a big decision for companies to travel down that path. To use social media effectively, people have to be hired to do the job right and companies have to decide if they want that expense. As time goes on, it is becoming more and more clear that companies should seriously consider opening up this professional department to reach as many customers as possible for a small cost.
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DeleteCompanies could try to get around this by banning things like Facebook and Snap-chat through their WiFi and make people have to use their data instead which would dissuade them from going on it in the first place.
ReplyDeleteIt’s nice to see a kind of topic that not many people would think of or even know about. And it is cool to see what an impact app features could have in the future. I just have an issue with the graphic used because you don’t even relate anything to the chart in the whole post. But besides that, I enjoyed learning about what a simply amount of numbers can do to a whole nation’s economy. And with that growth of technology we can expect to see a rise in more online sales and product placement by youtubers, twitter people, facebookers, and more. So with those placements, we will most likely see a rise in sales sometime in the near future.
ReplyDeleteIn my opinion, social media advertising is a good thing for businesses because most of the time it is free, like creating an Instagram page or Facebook profile. I don't see many downsides for the company, besides negative feedback. Speaking from experience, I have bought things on amazon that youtube product reviewers say is good, but when get them, they aren't nearly as good as they describe. I realized that the videos are most likely an endorsement from the suppliers, so they have to say good things about the product. Overall, I think that social media advertising can be good in some cases, but in my experiences, it is misleading.
ReplyDeleteSocial Media has become so big that they can control whatever and whenever. There are so many people and products out there that get promoted and social media that gets used on the daily. Yes, even though some of the apps take up and use data, which costs money, the apps and websites are highly addictive and the users will not care as long as their updated and in the flow with the hottest trends and gossip going on. As sad as it is, social media has taken up most of peoples time causing them to isolate themselves and avoid outside activity or even communicating with others face to face. As there are many many problems that come with social media and technology, there is no way they can all go at once. The amount of money that is made from each and every website is far beyond what one can think of. This is a great topic to write about and was very accurate.
ReplyDeleteI agree with you, social media has basically completely changed the economy. The major growth is making it easier for companies to reach their target markets through various sites and with surveys. This is actually a scary thing as with the data companies collect via social media they can find and get a any persons personal information in basically an instant. Though this is scary for the public it is greatly benefiting the millions of companies in the U.S. Overall the changing social media will keep changing and altering the economy as the new, advanced sites are created.
ReplyDeleteSocial media definitely has affected the economy like you said. It's great for advertising with free means such as making and instagram or they could even pay the big youtubers to advertise their product. However I don't think that people being unproductive can be blamed on technology and social media. That's more of a people problem than anything which has to be fixed through other means. But it's great to realize the problem.
ReplyDeleteI agree with you and that social media has totally changed the economy. Also according to the data that I think people who use social media doesn't know that some of these companies could probably see their personal information and even though scary things happen to these people out there, the companies could also use the social media to advertise their products. Overall I agree with you and that it has a huge impact in the economy.
ReplyDeleteI've never thought about how social media affects the economy. Another thing I've though of is how famous people affect it too. They advertise for companies without even knowing it, or they are hired from companies for advertising purposes. Also with the music industry taking off, all the ads you see on the apps are good ways of drawing in costumers. When I see them, I always exit them out because they always irritate me or are in the way of something I want to see. This is a creative idea though!
ReplyDeleteMost of the adults use social media in their daily lives. It is scary to think that social media not only impacts out lives but also economy.Social networking sites spread information faster than any other media and also social media is also great help for people to advertise their products. It help employers find employees and job-seekers find work. Social media sites have created a new industry and thousands of jobs in addition to providing new income and sales. So it not only helps people to connect with their family and friends but also help us find job and to make money.
ReplyDeleteYou know after reading what you have stated about social media, I find it very interesting. The fact that such a small thing that we are all used to affects the way that the economy works. If you think about it social media is a place where people advertise their products through people. This in turn allows us as the viewers to see what these people are using and raving about. In all a really good topic on how it affects the economy.
ReplyDeleteSocial media, does in fact, have a huge affect on the economy. The way people advertise is determined on the target market, but for social media, the target market is soon becoming one (equal). Older people are transitioning into the new, and getting accounts on Instagram, Snapchat, and Twitter. That is why businesses are advertising to social media and not a newspaper. I find it very interesting how social media has grown and how it continues to grow. This really puts into perspective how social media deals with the economy.
ReplyDeleteTo add to this, social media has also brought about awareness. Not only can products be advertised, but consumers can be especially aware of all of their options. This allows for more consumer influence on prices. Amazon plays a big role in this by offering a variety of brands and options all in one easy to navigate location. Consumers can search out the best deals, leaving goods that are too high in price or low in quality in the dust. Advertising on the platform of social media not only boosts companies, but also weeds out companies not meeting the standards of the online market.
ReplyDeleteThis was something that sparked my attention to read, but everything in this was accurate to what I have seen. I think it is so interesting how many companies benefit from social media people advertising the products that they are using. While the companies are benefiting from the free advertising, I wonder how free it actually is. The companies must be sponsoring or paying the people to advertise them, otherwise, what incentive is there for the social media person to even show what they are using. While the economy can benefit and buys are not risking as much of an opportunity costs because they can see the results of the good or service used by others, however there must be some drawback to this “free advertising” because nothing is really free in life.
ReplyDeleteWhile the social media influence on the economy has its benefits and continues to increase, I believe that if it continues like this it will be too much for some people. While yes, it is a sign of the evolving world and technology, traditional advertising and business is becoming obsolete and instead moving to places where I am not looking for products, where it is invading my privacy. Like you said, it has its up and downs. While it is benefiting the companies advertising these products, the people who use social media just for social media are suffering from the excessive corporate advertisement which I believe will eventually lead to a decrease in social media use.
ReplyDeleteMany companies in fact track your data using web "cookies". These cookies are permissions and programs that analyze and monitor how you use the web and it's endless number of sites. By this they can match ads with personal interests. Now with enough statistics and demographically; many companies can actually predict a vacation that you have not searched for but were involved through someone else going through the planning process. Utilizing this technology is creepy, yet effective and really, really, annoying. This allows websites, and companies to take in profit without having to find an effective means of getting the advertisement or marketing media to the designated demographic or market. This effectively markets to those who care to be marketed to by a certain company or product.
ReplyDeleteSocial media is the new source of information, the new platform for people to get their information. Instead of people walking around with newspapers, we new see people walking around on their smartphones looking at news. I get where they’re coming from, but it always cracks me up when people are walking down the street and they say something along the lines of ‘why are these people on their phones, why aren’t they reading the news, etc.’ They are reading the news, it’s just on a different platform, not on paper. This is why newspapers are dying; everybody looks to social media to get their news.
ReplyDeleteAlso, the impact that social media has had on non-news companies cannot be ignored. The survival of companies in the past fifteen or so years was how well they transitioned to an internet based world - those who jumped on board flourished, and those who kept the old ways crumpled. Now, social media is allowing companies to advertise and do associated other marketing things; we’ll see who makes it.
Social media have become the majority of media consumed each day by the average American. Of course ads annoy us but they are necessary in funding the sites and apps that we love. My problem with the new advertising system is how much information about you is used to advertise. By agreeing to anything these sites ask you to, you could be easily giving up most information on your accounts to advertisers. The larger companies with a large advertising budget are the ones making the brute attempts at your personal information. Though many people can’t see the issue since we have become so used to giving out information, it’s scary to think how much a company can obtain about you.
ReplyDeleteSocial media is the new source of information, the new platform for people to get their information. Instead of people walking around with newspapers, we new see people walking around on their smartphones looking at news. I get where they’re coming from, but it always cracks me up when people are walking down the street and they say something along the lines of ‘why are these people on their phones, why aren’t they reading the news, etc.’ They are reading the news, it’s just on a different platform, not on paper. This is why newspapers are dying; everybody looks to social media to get their news.
ReplyDeleteAlso, the impact that social media has had on non-news companies cannot be ignored. The survival of companies in the past fifteen or so years was how well they transitioned to an internet based world - those who jumped on board flourished, and those who kept the old ways crumpled. Now, social media is allowing companies to advertise and do associated other marketing things; we’ll see who makes it.
It’s smart for businesses to utilize social media as it’s all our society seems to comprehend. Your post reminded me of Haylie’s when she discussed the matter of make tutorials persuading their viewers to buy the same types of make that they use. They then would make a profit from advertising make-up companies products. This is the same as social media using all types of brands to advertise and make money for literally talking about a product. Businesses are all starting to move towards this idea due to the high consideration the followers are displaying. It’s no longer TV advertisements or newspaper, our generation focuses on the internet and the new trends. If someone famous on social media is telling their followers that look up to them to buy something they have, they’re going to listen and this is deeply affecting the economy by establishing higher demand and more competition, as you stated, for companies.
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